Constellation Corp. reported the following liability balances on December 31, 2021: 10% note payable issued on October 1, 2020, maturing October 1, 2022... 12% note payable issued on March 1, 2020, on March 1, 2022.... ..P 2,000,000 4,000,000 The 2021 financial statements were issued on March 31, 2022. Under the loan agreement, the entity has the right on December 31, 2021 to roll over the 10% note payable for at least 12 months after December 31, 2021. On March 1, 2022, entire P 4,000,000 balance of the 12% note payable was refinanced through issuance of a long-term obligation payable lump-sum. What amount of the notes payable should be classified as current on December 31, 2021?

Constellation Corp. reported the following liability balances on December 31, 2021: 10% note payable issued on October 1, 2020, maturing October 1, 2022... 12% note payable issued on March 1, 2020, on March 1, 2022.... ..P 2,000,000 4,000,000 The 2021 financial statements were issued on March 31, 2022. Under the loan agreement, the entity has the right on December 31, 2021 to roll over the 10% note payable for at least 12 months after December 31, 2021. On March 1, 2022, entire P 4,000,000 balance of the 12% note payable was refinanced through issuance of a long-term obligation payable lump-sum. What amount of the notes payable should be classified as current on December 31, 2021?

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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Constellation Corp. reported the following liability balances on December 31, 2021:
10% note payable issued on October 1, 2020,
maturing October 1, 2022...
12% note payable issued on March 1, 2020,
on March 1, 2022....
.P 2,000,000
4,000,000
The 2021 financial statements were issued on March 31, 2022.
Under the loan agreement, the entity has the right on December 31, 2021 to roll over the 10%
note payable for at least 12 months after December 31, 2021.
On March 1, 2022, entire P 4,000,000 balance of the 12% note payable was refinanced
through issuance of a long-term obligation payable lump-sum.
What amount of the notes payable should be classified as current on December 31, 2021?

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