Reference no: EM133122879
Question - The following items were identified to comprise LAKERS Company's liabilities as of December 31, 2021
Accounts payable 950,000
6% Notes payable - due January 15, 2022 1,000,000
7% Notes payable - due February 15, 2022 1,500,000
8% Notes payable - due March 15, 2022 2,000,000
8% Loan payable - due February 15, 2022 2,300,000
10% Loan payable - due March 1, 2022 6,000,000
The following information were available at the time the 2020 financial statements were being prepared:
The accounts payable balance included a P250,000 advance from the company's president the due dates were P150,000 on June 30, 2022 and P100,000 on June 30, 2022
The board of directors of LAKERS Company in its December 28, 2021 meeting decided unanimously that it would refinance its 6% notes from JAMES Lending Company.
At December 29, 2021, LAKERS Company completed an agreement with DAVIS Financing Company rescheduling the maturity date of the 7% notes to January 15, 2022.
On January 4, 2023, LAKERS Company completed an agreement with MONK Financing Company to refinance its existing note with another one maturing on January 31, 2022.
The 8% loan includes a stipulation that LAKERS Company's debt to equity ratio should not be higher than 0.40 at all times, otherwise the entire loan would be demandable immediately. At December 31, 2021, LAKERS Company violated its debt covenant. Management intends to seek a waiver from ANTHONY Finance. On January 10, 2022, AMTHONY Finance cancelled its demand for payment.
The 10% loan includes a clause that LAKERS Company must maintain a shop within a 5-block radius from Bradley Rural Bank; otherwise, the bank will terminate the loan and have it demandable. The loan agreement likewise provided a period of 15-months for LAKERS Company to set up a new shop from the time it closes its original one before the bank would issue a demand letter for the loan. On October 30, 2021, in accordance with the municipal order, LAKERS Company sold its shop to allow the construction of a road. At present, LAKERS Company is still scouting for a new location.
Required -
1. Find the amount presented under total current liability?
2. Find the amount presented under total noncurrent liability?