Dear company has a 2,400,000 note payable due June 30, 2019. On December 31, 2018, the entity signed an agreement to borrow up to 2,400,000 to refinance the note payable on a long term basis. The financing agreement called for borrowing not to exceed 80% of the value of the collateral the entity was providing. On December 31, 2018, the value of the collateral was 1,800,000.
Dear company has a 2,400,000 note payable due June 30, 2019. On December 31, 2018, the entity signed an agreement to borrow up to 2,400,000 to refinance the note payable on a long term basis. The financing agreement called for borrowing not to exceed 80% of the value of the collateral the entity was providing. On December 31, 2018, the value of the collateral was 1,800,000.
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 14RE: On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment....
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10. Dear company has a 2,400,000 note payable due June 30, 2019. On December 31, 2018, the entity signed an agreement to borrow up to 2,400,000 to refinance the note payable on a long term basis. The financing agreement called for borrowing not to exceed 80% of the value of the collateral the entity was providing. On December 31, 2018, the value of the collateral was 1,800,000. On December 31, 2018,
what amount of the note payable should be reported as current liabilities?
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