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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 Statement of Financial Position, what amount of the note payable should be excluded from current liabilities?

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