Reference no: EM133920083

Problem

Cha Company provided the following information on December 31, 2020: Accounts payable, net of debit balances of P100,000 in creditors' accounts 1,900,000 Accrued expenses 500,000 Bonds payable due December 31, 2021 3,000,000 Discount on bonds payable 200,000 Deferred tax liability 400,000 Income tax payable 700,000 Cash dividend payable 800,000 Stock dividend payable 300,000 Note payable - 6%, due March 1, 2021 1,500,000 Note payable - 8%, due October 1, 2021 1,000,000 The 2020 financial statements were issued on March 31, 2021. On March 1, 2021, the 6% note payable was refinanced on a long-term basis. Under the loan agreement for the 8% note payable, the entity has the discretion to refinance the obligation for at least twelve months after December 31, 2020. The deferred tax liability is based on temporary differences that will reverse in 2021. A sinking fund of P3,000,000 was set aside to pay the bonds payable upon maturity. Get the instant assignment help. What amount should be reported as total current liabilities on December 31, 2020?