pptm ^e to search4ED+₁CAt December 31, 2020, Carla Corporation owes $506,600 on a note payable due February 15, 2021.4(a)If Carla had restructured the note on December 15, 2020, such that Carla has the contractual right to defer payment of $253,300of the note until February 15, 2022, how much of the $506,600 should be reported as a current liability at December 31, 2020?FThe amount to be reported as a current liability at December 31, 2020 $ReTextbook and MediaXa *-$Save for Later(b)ACC341-2022-Ho...xlsxV%5TGO Et n 21** DKBA6Ymusic 2.jpegH&7NKyllUJ* 000MIPSKF10(9WOAltF11OL888F12PAAttempts: 0 of 3 used Submit AnswerHomePrtSc{?EndCtrl40°F Mostly cloudy 1904Insert}DeleteBackspacePgUpEnt ch(b)If Carla pays off the note on February 15, 2021, and then borrows $1,013,200 on a long-term basis on March 1, how much of the$506,600 should be reported as a current liability at December 31, 2020, the end of the fiscal year?$4The amount to be reported as a current liability at December 31, 2020 $4ReTextbook and MediaACC341-2022-Ho....xlsxFSave for LaterV%5TGO.B+6music 2.jpegDKKYF7H&7NUJ10* 008MP 9F10(9KWeOAltF11CoOL2888F12Attempts: 0 of 3 used Submit AnswerP• VIHome17;PrtScCEnd?40°F Mostly cloudyInsertCtrlDeleteBackspaPgUp

ANSWER Amount of note payable due on February 15,2021 = $506,600 a) Defer payment of note until…

At December 31, 2020, Carla Corporation owes $506,600 on a note payable due February 15, 2021. (a) If Carla had restructured the note on December 15, 2020, such that Carla has the contractual right to defer payment of $253,300 of the note until February 15, 2022, how much of the $506,600 should be reported as a current liability at December 31, 2020? The amount to be reported as a current liability at December 31, 2020 $

At December 31, 2020, Carla Corporation owes $506,600 on a note payable due February 15, 2021. (a) If Carla had restructured the note on December 15, 2020, such that Carla has the contractual right to defer payment of $253,300 of the note until February 15, 2022, how much of the $506,600 should be reported as a current liability at December 31, 2020? The amount to be reported as a current liability at December 31, 2020 $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At January 1, 2021, Rothschild Chair Company, Inc., was indebted to First Lincoln Bank under a $39 million, 10% unsecured note. The note was signed January 1, 2018, and was due December 31, 2024. Annual interest was last paid on December 31, 2019. Rothschild Chair Company was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Prepare all journal entries by Rothschild Chair Company, Inc., to record the restructuring and any remaining transactions relating to the debt under each of the independent circumstances below: 1. First Lincoln Bank agreed to settle the debt in exchange for land having a fair value of $35 million but carried on Rothschild Chair Company's books at $30.1 million. 2. First Lincoln Bank agreed to (a) forgive the interest accrued from last year, (b) reduce the remaining four…
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