At December 31, 2019, Wayne Company owned note payable of P1,950,000, due March 15, 2020. Wayne expects to retire this debt with proceeds from the sale of 200,000 shares of its share capital. The shares were sold for P10 per share on March 1, 2020, prior to the issuance of the year – end financial statements. In Wayne’s December 31, 2019 Statement of Financial Position, what amount of the note payable should be excluded from current liabilities?
At December 31, 2019, Wayne Company owned note payable of P1,950,000, due March 15, 2020. Wayne expects to retire this debt with proceeds from the sale of 200,000 shares of its share capital. The shares were sold for P10 per share on March 1, 2020, prior to the issuance of the year – end financial statements. In Wayne’s December 31, 2019 Statement of Financial Position, what amount of the note payable should be excluded from current liabilities?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 29E
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At December 31, 2019, Wayne Company owned note payable of P1,950,000, due March 15, 2020. Wayne expects to retire this debt with proceeds from the sale of 200,000 shares of its share capital. The shares were sold for P10 per share on March 1, 2020, prior to the issuance of the year – end financial statements. In Wayne’s December 31, 2019
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