The following information was provided by a company regarding its currently maturing obligations as of December 31, 2021:

• On December 31, 2021, the company had P1,000,000 short-term notes payable due February 14, 2022. On January 15, 2022, the company issued bonds with a face value of P900,000. The proceeds from the issuance of bond plus additional cash held by the company on December 31, 2021, were used to liquidate the P1,000,000 of short-term notes.
• A P500,000 notes payable is due on March 15, 2022. On December 31, 2021, the company signed an agreement to borrow up to P500,000 to refinance the notes payable on a long-term basis. The financing agreement called for borrowings not to exceed 80 percent of the value of collateral the company was providing. At the date of
issue of the December 31, 2021, financial statements, the value of the collateral was P500,000 and was not expected to fall below this amount during 2022.

The financial statements of the company were authorized to be issued on March 31, 2022. How many liabilities are current as of December 31, 2021?

Answer rating: 100% (QA)

Ans Step 1 Current liabilities CL refers to the term of accounting which states th... View the full answer