The company has the following three loans payable scheduled to be repaid in Febr
ID: 2499459 • Letter: T
Question
The company has the following three loans payable scheduled to be repaid in February of next year. The company intends to repay Loan A, for $10,000, when it comes due in February. In the following September, the company intends to get a new loan for $8,000 from the same bank. The company intends to refinance Loan B for $15,000 when it comes due in February. The refinancing contract, for $18,000, will be signed in May, after the financial statements for this year have been released. The company intends to refinance Loan C for $20,000 before it comes due in February. The actual refinancing, for $17,500, took place in January, before the Financial statements for this year have been released. Total current liabilities. Total noncurrent liabilities.Explanation / Answer
a)
Current Liability from Loan A = $10000-$8000 = $2000.
Current Liability from Loan B = 0
Current Liability from Loan C = 0
Total Current Liability = $2,000.
b)
Non-Current Liability of Loan A = $8000 which is refinanced again.
Non-Current Liability of Loan B = $15,000 intended to refinance again.
Non-Current Liability of Loan C = $17,500 already made contract of rrefinancing
Total Non-Current Liability = $40,500