Included in Witt Company’s liability account balance at December 31, 2021 were the following: 14% note payable issued October 1, 2020 maturing September 30, 2022   500,000 16% note payable issued April 1, 2019 maturing April 1, 2022   800,000 Witt’s December 31, 2021 financial statements were issued on March 31, 2022.  On January 15, 2022, the entire P800,000 balance of 16% note was refinanced by issuance of a long-term obligation payable in a lump sum.  In addition, on March 10, 2022, Witt consummated a noncancelable agreement with the lender to refinance the 14%, P500,000 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 provision.  On the December 31, 2021 balance sheet, the amount of the notes payable that Witt should classify as current liability is

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Included in Witt Company’s liability account balance at December 31, 2021 were the following:

14% note payable issued October 1, 2020 maturing September 30, 2022

 

500,000

16% note payable issued April 1, 2019 maturing April 1, 2022

 

800,000

Witt’s December 31, 2021 financial statements were issued on March 31, 2022.  On January 15, 2022, the entire P800,000 balance of 16% note was refinanced by issuance of a long-term obligation payable in a lump sum.  In addition, on March 10, 2022, Witt consummated a noncancelable agreement with the lender to refinance the 14%, P500,000 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 provision. 

On the December 31, 2021 balance sheet, the amount of the notes payable that Witt should classify as current liability is

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