Included in A Corporation's liability account balances at December 31, 2020, were the following: 14% - note payable issued October 1, 2018, maturing September 30, 2021 P250,000 16% - note payable issued April 1, 2018, payable in six annual installments of P100,000 beginning April 1, 2019 400,000 A's December 31, 2020, financial statements were issued on March 31, 2021. On January 15, 2021, the entire P400,000 balance of the 16 percent note was refinanced by issuance of a long-term obligation payable in a lump sum. In addition, on March 10, 2021, A consummated a noncancelable agreement with the lender to refinance the 14 percent, P250,000 note on a long-term basis, on readily determinable terms that have not yet been implemented. Both parties are financially capable of honoring the agreement, and there have been no violations of the agreement's provisions. On the December 31, 2020, statement of financial position, the amount of the notes payable that A should classify as noncurrent obligations is
Included in A Corporation's liability account balances at December 31, 2020, were the following:
|
14% - note payable issued October 1, 2018, maturing September 30, 2021 |
P250,000 |
|
16% - note payable issued April 1, 2018, payable in six annual installments of P100,000 beginning April 1, 2019 |
400,000 |
A's December 31, 2020, financial statements were issued on March 31, 2021. On January 15, 2021, the entire P400,000 balance of the 16 percent note was refinanced by issuance of a long-term obligation payable in a lump sum. In addition, on March 10, 2021, A consummated a noncancelable agreement with the lender to refinance the 14 percent, P250,000 note on a long-term basis, on readily determinable terms that have not yet been implemented. Both parties are financially capable of honoring the agreement, and there have been no violations of the agreement's provisions. On the December 31, 2020,
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