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  • Answer: P 2,000,000: Cost of Machinery P 2,500,000 Down Payment (500,000) Balance Due

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    Elaine Joyce Garcia
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    Mark Company should not report any current liability in its December 31, 2021 statement of financial position for the amount owed to Julian Company. Julian Company agreed at the balance sheet date not to demand payment for the breach, so the amount owed would not be considered a current liability.

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    Mark Company should not report any current liability in its December 31, 2021 statement of financial position for the amount owed to Julian Company. Julian Company agreed at the balance sheet date not to demand payment for the breach, so the amount owed would not be considered a current liability.

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    © All Rights Reserved
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    20 views1 page

    Answer: P 2,000,000: Cost of Machinery P 2,500,000 Down Payment (500,000) Balance Due

    Uploaded by

    Elaine Joyce Garcia
    Mark Company should not report any current liability in its December 31, 2021 statement of financial position for the amount owed to Julian Company. Julian Company agreed at the balance sheet date not to demand payment for the breach, so the amount owed would not be considered a current liability.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    What total amount of current liability should Mark Company report in its

    December 31, 2021 statement of financial position assuming Julian Company


    agreed at balance sheet date not to demand payment as a consequence of the
    breach?

    ANSWER:
    Cost of machinery P 2,500,000
    Down payment (500,000)
    Balance Due P 2,000,000

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