What is the current liabilities related to the loans

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Question - IDD Inc. showed the following liabilities as of December 31, 2020:

1. A 1,000,000 loan due on March 15, 2021. The management contacted the bank to extend the due date on December 31, 2021. The bank agreed on the extension on January 1, 2021.

2. A 2,000,000 loan due on June 30, 2021. The officers of the company negotiated the extension of the loan to June 30, 2022 on December 31, 2020 but the bank agreed to the extension on January 1, 2021

3. A 3,000,000 loan having a strict condition that its debt ratio be below 60%. As of December 31, 2020, total liabilities is 12 million and total equity is 8 million.

Required - What is the current liabilities related to the loans as of December 31, 2020?

Reference no: EM133013694

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