. Included in Kiwi Company’s liability balances on December 31, 2020, are the following: • 10% note payable issued on October 1, 2019, maturing on October 1, 2021- P8,000,000 • 12% note payable issued on March 2019, maturing on March 1, 2021- P16,000,000 Kiwi’s 2020 financial statements were issued on March 31, 2021. On December 31, 2020, Kiwi has the discretion to refinance the 10% note payable for at least twenty months after December 31, 2020. On December 31, 2020, the entire P16,000,000 balance of the 12% note payable was refinanced on a long-term basis. What amount of the notes payable should be classified as non-current on December 31, 2020? a. P-0- b. P8,000,000 c. P24,000,000 d. P16,000,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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32. Included in Kiwi Company’s liability balances on December 31, 2020, are the following:

• 10% note payable issued on October 1, 2019, maturing on October 1, 2021- P8,000,000

• 12% note payable issued on March 2019, maturing on March 1, 2021- P16,000,000 Kiwi’s 2020 financial statements were issued on March 31, 2021.

On December 31, 2020, Kiwi has the discretion to refinance the 10% note payable for at least twenty months after December 31, 2020. On December 31, 2020, the entire P16,000,000 balance of the 12% note payable was refinanced on a long-term basis. What amount of the notes payable should be classified as non-current on December 31, 2020?

a. P-0-
b. P8,000,000
c. P24,000,000
d. P16,000,000

 

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