Reference no: EM133015817

Question - JYP Inc. is a manufacturer and retailer of Twice items. The company's financial statements for the year ended December 31, 2021, discloses the following debt obligations of the company at the end of its reporting period. JYP's financial statements were authorized for issuance on April 1, 2022.

A long- term obligation of P300,000. The loan is maturing over 3 years in the amount of P100,000 per year. The loan is dated August 31, 2021, and the first maturity date is August 31, 2022.

A debt obligation of P100,000 maturing on December 31, 2024. The debt is callable on demand by the lender at any time. A long-term obligation of P1,000,000 due November 30, 2031.

On December 30, 2021, JYP breaches a covenant on its debt obligation and the loan becomes payable on demand. An agreement is reached to provide a waiver of the breach on January 5, 2022. A short-term obligation of P160,000 in the form of notes payable due March 5, 2022.

The company issued 10,000 ordinary shares for P15 per share on January 31, 2022. The proceeds from the issuance, plus P10,000 cash, were used to fully settle the debt on March 5, 2022.

A P200,000 short-term obligation due on February 28, 2022. Its maturity could be extended to February 28, 2024, provided JYP agrees to provide additional collateral. On February 14, 2022, an agreement is reached to extend the loan's maturity to February 28, 2024.

Required -

a. How much should be reported as current liabilities as of December 31, 2021?

b. How much should be reported as noncurrent liabilities as of December 31, 2021?