The company has the following three loans payable scheduled to be repaid in Febr
ID: 2499735 • Letter: T
Question
The company has the following three loans payable scheduled to be repaid in February of next year. The company ontends to repay Loan A, for 10,000 dollars, when it comes due in February. In the following September, the company intends to get a new loan for 8,000 dollars from the same bank. The company ontends to refinance Loan B for 15,000 dollars when it comes due in February. The refinancing contract for 18,000 dollars, 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 dollars before it comes due in February. The actual refinancing for 17,500 dollars, took place in January, before the financial statements for this year have been released. As of December 31 of this year, compute: Total current liabilities. Total noncurrent liabilities.Explanation / Answer
current liability =likely to paid within 1 year = 10000 + 2500 =$ 12500
Incase of note 3 ,Refinancing is done only for $ 17500 so remaining is likely to be repaid 20000- 17500 = 2500
2)non current liability = 15000+ 17500 =$ 32500