Namekus Company has the following three loans payable scheduled to be repaid in February of next year. The company’s accounting year ends on December 31.A. The company intends to repay Loan 1 for P100,000 when it comes due in February. In the following October, the company intends to get a new loan for P80,000 from the same bank.B. The company intends to refinance Loan 2 for P150,000 when it comes due in February. The refinancing agreement, for P180,000, will be signed in April, after the financial statements for this year have been authorized for issue.C. The company intends to refinance Loan 3 for P200,000 before it comes due in February. The actual refinancing, for P175,000, took place in January, before the financial statements for this year have been authorized for issue. As of December 31 of this year, the total noncurrent liabilities to be reported on the company’s statement of financial position should be:
Namekus Company has the following three loans payable scheduled to be repaid in February of next year. The company’s accounting year ends on December 31.A. The company intends to repay Loan 1 for P100,000 when it comes due in February. In the following October, the company intends to get a new loan for P80,000 from the same bank.B. The company intends to refinance Loan 2 for P150,000 when it comes due in February. The refinancing agreement, for P180,000, will be signed in April, after the financial statements for this year have been authorized for issue.C. The company intends to refinance Loan 3 for P200,000 before it comes due in February. The actual refinancing, for P175,000, took place in January, before the financial statements for this year have been authorized for issue. As of December 31 of this year, the total noncurrent liabilities to be reported on the company’s statement of financial position should be:
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter9: Working Capital
Section: Chapter Questions
Problem 9Q
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Namekus Company has the following three loans payable scheduled to be repaid in February of next year. The company’s accounting year ends on December 31.A. The company intends to repay Loan 1 for P100,000 when it comes due in February. In the following October, the company intends to get a new loan for P80,000 from the same bank.B. The company intends to refinance Loan 2 for P150,000 when it comes due in February. The refinancing agreement, for P180,000, will be signed in April, after the financial statements for this year have been authorized for issue.C. The company intends to refinance Loan 3 for P200,000 before it comes due in February. The actual refinancing, for P175,000, took place in January, before the financial statements for this year have been authorized for issue. As of December 31 of this year, the total noncurrent liabilities to be reported on the company’s statement of financial position should be:
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