Included in Dwight Corporation's liability account balances at Dec. 31, 2021, were the following: 14% - note payable issued Oct. 1, 2019, maturing Sept. 30, 2022 16%-note payable issued Apr. 1, 2019, payable in six annual installments of P100,000 beginning Apr. 1, 2020 P250,000 400,000 Dwight's Dec. 31, 2021, financial statements were issued on Mar. 31, 2022. On Jan. 15, 2022, 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 Mar. 10, 2022, Dwight 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. a. P100,000 b. P250,000 c. P300,000 d. P650,000 On the Dec. 31, 2021, statement of financial position, the amount of the notes payable that Dwight should classify as noncurrent obligations is

Included in Dwight Corporation's liability account balances at Dec. 31, 2021, were the following: 14% - note payable issued Oct. 1, 2019, maturing Sept. 30, 2022 16%-note payable issued Apr. 1, 2019, payable in six annual installments of P100,000 beginning Apr. 1, 2020 P250,000 400,000 Dwight's Dec. 31, 2021, financial statements were issued on Mar. 31, 2022. On Jan. 15, 2022, 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 Mar. 10, 2022, Dwight 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. a. P100,000 b. P250,000 c. P300,000 d. P650,000 On the Dec. 31, 2021, statement of financial position, the amount of the notes payable that Dwight should classify as noncurrent obligations is

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 16E

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