Hai-Inkam Bhd (HIB) provided the following information related to the liability of the company on 31 December 2022: 1. Thecompany reports a note payable amounting to RM45,000, which is due on 31 August 2023. The company has come intoagreement with the creditor on refinancing the debt, which is due on 15 January 2024. The related agreement was signedon 1 January 2023. Assume that the aggrement on debt refinancing was signed on 30 December 2022. (i) Explain how Hai-Inkam Bhd reports the liability; and (ii) Provide THREE (3) conditions to be fulfilled to justify your answer in (i)

i) Reporting of Liability by Hai-Inkam Bhd (HIB)Hai-Inkam Bhd (HIB) would report the liability as a…

on 1 January 2023. Assume that the aggrement on debt refinancing was signed on 30 December 2022. (i) Explain how Hai- Inkam Bhd reports the liability; and (ii) Provide THREE (3) conditions to be fulfilled to justify your answer in (i)

on 1 January 2023. Assume that the aggrement on debt refinancing was signed on 30 December 2022. (i) Explain how Hai- Inkam Bhd reports the liability; and (ii) Provide THREE (3) conditions to be fulfilled to justify your answer in (i)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Entity A has the following liabilities as of December 31, 2021. a. Trade accounts payable, net of…

A: Current Liabilities Current liabilities which is included in the liability section in the balance…

Q: Match (by letter) the correct reporting method for each of the items listed below. Reporting Method…

A: Current liability : Current liabilities are those liability which are due within a year. Long term…

Q: 10. B Inc is a manufacturer and retailer of household furniture. The finance team forwarded your…

A: Liabilities refer to the obligation which to be incurred by a business entity in the future. This…

Q: How much should Cicamore report as current liabilities in its December 31,2022 statement of…

A: Liability means the amount which is to be paid to an outsider by business. It is the present…

Q: b.bond payable c.two-year note payable

A: Current liabilities are a company's short-term financial commitments due within a year or during a…

Q: To which account does an enterprise adopting the 7 / A option debt its interest, exchange…

A: Financial Expenses They are costs incurred from borrowing from lenders and are outside the company's…

Q: Ben & Ben Music Company carries a wide variety of musical instruments, sound reproduction equipment,…

A: Solution; 1) WARRANTY EXPENSE: Warranty expense (sales) = 5,400,000 Estimated warranty cost = 2%…

Q: On Jan. 1, 20x1, an entity has an outstanding note payable with carrying amount of P 1,000,000. On…

A: Introduction:- Notes payable is a liability account. It is a written promissory note. As per notes…

Q: December 31, 2018 December 31, 2019 150,000 Cash Accounts Receivable Merchandise Inventory…

A: The balance sheet is one of the important financial statement of the business which represents the…

Q: At December 31, 2020, Burr Corporation owes $500,000 on a note payable due February 15, 2021. (a) If…

A: a.

Q: The following amortization schedule indicates the interest and principal that Chip's Cookie…

A: Solution : To record installment payment of note, cash is credited with installment amount; Interest…

Q: At December 31, 2021 the following balances existed on the books of Bulaga Corporation: Bonds…

A: Bond payable is the liability for the company on which the interest has to be paid by the company.…

Q: Which of the following statements is true? a. If any portion of a non-current liability is to be…

A: current liability - liabilities that are to be paid within one year are current liabilities.…

Q: Current liabilities are obligations where liquidation is reasonably expected to require the use of…

A: Liabilities refers to an obligation which is yet not paid for. Liabilities are divided on the basis…

Q: What amount should RIS report as a liability at December 31, 2021? a. P 0 b. P 26,000

A: Liability is an obligation that has to be paid by sacrificing the assets of the company. It includes…

Q: Which of the following temporary differences results in a deferred tax asset in the year the…

Q: Access the FASB Accounting Standards Codification at the FASB website…

A: Accrued Liabilities: Accrued liabilities are those expenses that are incurred but not yet paid.…

Q: . How much from the list od debt above? (items a to d, excluding accrued interests) should be…

A: There are two types of events occurring after the balance sheet date. Some events are adjusting…

Q: expense warranty accrual method

A: Warranty expense accrual method recognizes warranty expense if it is probable and can be estimated…

Q: M owes 10,000.00. The debt which.is evidence by a promissory note,is guaranteed by G.P assigns…

A: Promissory note refers to a financial instrument including a promise by one party to another to pay…

Q: The following amortization schedule indicates the interest and principal that Chip's Cookie…

A: Annual installment of in cash is given the data i.e., it includes both interest and principal…

Q: Question 1: What is the correct amount of accounts payable to be presented in the statement of…

A: The question pertains to determining the correct current and non current liabilities of the…

Q: Oriole Company borrowed $790,000 on December 31, 2019, by issuing an $790,000, 9% mortgage note…

A: Lets understand the basics. Current liabilities are the liabilities which are required to be repaid…

Q: Which of the following is a charteristic of a current liability

A: Liability: Liability is the obligation of the company to pay which comes from a past activity done…

Q: 5, 2027, how much of the $500,000 should be reported as a current liability at December 31, 2025?…

A: Current liabilities are those short term finanical obligations that are due within a period of 12…

Q: Assuming that both parties use the effective rate method, what gain or loss from the retirement of…

A: The effective rate method is the method for the amortization of the bond, where the interest expense…

Q: The debt amortized by equal payments made at the end of each payment interval. Compute (a) the size…

A: Debt Amortization or loan amortization is the payment of amount taken along with the interest at a…

Q: Access the FASB Accounting Standards Codification at the FASB website ( asc.fasb.org ) Required:…

A: Accrued Liabilities: Accrued liabilities are those expenses that are incurred but not yet paid.…

Q: Which of the following is most likely to be classified and reported as current liability? a. Bond…

A: The liabilities that are payable within one year are classified as current liabilities. It includes…

Q: an entity has an existing note maturing within 12 months from the balance sheet date. The entity has…

A: solution concept In case where there is a debt maturing within 12 months from the balance sheet date…

Q: If in each interval of time agreed upon in an obligation, interest is added to the principal,…

A: Compound Interest: In this concept, the interest is calculated on principal and interest accumulated…

Q: On December 31, 2021, what total amount should be reported as current liabilities? a.) 1,066,000…

A: Calculation of Current Liabilities Current liabilities = Accrued Liabilities expense + Unearned…

Q: 11. An entity received a seven year zero interest bearing note on February 1, 2019 in exchange for a…

A: Interest on the note prevailing on just December 31 will be considered as the interest rate for…

Q: Honest Corporation carried a provision of P1,500,000 in the draft financial statements for the year…

A: Answer: C.1,000,000 Accrued liabilities are such liabilities which have not yet been paid during an…

Q: At December 31, 2020, the available-for-sale debt securities for Larkspur, Inc. are as follows.…

A: Unrealized Gain/ Loss - Available of Sale Securities should always reported at fair value. At the…

Q: At December 31, 2020, Carla Corporation owes $506,600 on a note payable due February 15, 2021. (a)…

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

Q: insured who wants to verify the deductible on Section I of their Homeowners policy should look at…

A: insurance policy is considered to be contract between the policy holder and the insurance this…

Q: In 2021, TUC Inc. guaranteed a bank loan of ATT Corp. ATT Corp has made all the required loan…

A: TUC Inc. guaranteed a bank loan of ATT Corp. ATT Corp has made all the required loan payments. Since…

Q: Cullumber Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 8% mortgage note…

A: Introduction: Liabilities are legally binding promises that must be paid to some other person or…

Q: Required a) Explain, including calculations, how the issue of the bond would be accounted for by…

A: On 1st January 2021 Corgi Ltd. issued bonds of £5 million at par value, the bonds are redeemable on…

Q: (5 points) Which of the following is true of the straight-line method for amortizing premiums and…

A: The objective of the question is to identify the correct statement about the straight-line method…

Question

Hai-Inkam Bhd (HIB) provided the following information related to the liability of the company on 31 December 2022: 1. The
company reports a note payable amounting to RM45,000, which is due on 31 August 2023. The company has come into
agreement with the creditor on refinancing the debt, which is due on 15 January 2024. The related agreement was signed
on 1 January 2023. Assume that the aggrement on debt refinancing was signed on 30 December 2022. (i) Explain how Hai-
Inkam Bhd reports the liability; and (ii) Provide THREE (3) conditions to be fulfilled to justify your answer in (i)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: i) Reporting of Liability by Hai-Inkam Bhd (HIB)

VIEW

Step 2: (ii) Conditions to Justify the Reporting of Liability

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Based on the information below, I have to prepare the adjusting entry at December 31, 2022 to report the securities at fair value. Thank you in advance!
5. Soriano's Corporation's liability account balances at June 30, 2020, included a 10% notes payable in the amount of P3,600,000. The note is dated October 1, 2019, and is payable in three equal annual payments of P1,200,000 plus interest. The first interest and principal payment was made on October 1, 2020. In its June 30, 2021 financial statement, what amount should be recorded as accrue interest for this note?
Donna Clark Company issued $612,000 of 9%, 20-year bonds on January 1, 2025, at 101. Interest is payable semiannually on July 1 and January 1. Clark Company uses the straight-line method of amortization for bond premium or discount. Prepare the journal entries to record the following.
On December 31, 2025, Blue Inc. rendered services to Beghun Corporation at an agreed price of $106,641, accepting $41,800 down and agreeing to accept the balance in four equal installments of $20,900 receivable each December 31. An assumed interest rate of 11% is imputed. (a1) Prepare an amortization schedule. Assume that the effective-interest method is used for amortization purposes. (Round answers to O decimal places, e.g. 5,275.)
Record the appropriation of $77000 of retained earnings on December 31, 2022, by Jack Inc. to establish an appropriation for bond retirement. Record the entry to establish appropriation.
E16.11 (LO 3), AP On December 31, 2022, available-for-sale debt securities for Storrer, Inc. are as follows. The securities are considered to be long-term investments. Security A B C Cost $17,500 12,500 23,000 $53,000 Fair Value $16,000 14,000 21,000 $51,000 Instructions Prepare the adjusting entry on December 31, 2022, to report the securities at fair value. Show the statement presentation on December 31, 2022, after adjustment to fair value. E. Kretsinger, a member of the board of directors, does not understand the reporting of the unrealized gains or losses. Write a letter to Ms. Kretsinger explaining the reporting and the purposes that it serves. Prepare to adjust entries for fair value, and indicate statement presentation for two classes of securities.
At December 31, 2022, the trading debt securities for Sheridan, Inc. are as follows. Security A (a) B C Cost $17,800 12,000 Dec. 31 22,900 $52,700 Fair Value $16,300 13,600 19,400 $49,300 Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. (List all debit entries before credit er Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No- for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit
EH.7 (LO 3), AP Writing At December 31, 2022, available-for-sale debt securities for Gwynn, Inc. are as follows. The securities are considered to be a long-term investment. Instructions Security A B C Total Cost $18,100 12,500 23,000 $53,600 Fair Value $16,000 14,800 18,000 $48,800 a. Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. b. Show the statement presentation at December 31, 2022, after adjustment to fair value. c. Pam Jenks, a member of the board of directors, does not understand the reporting of the unrealized gains or losses on trading debt securities and available-for-sale debt securities. Write a letter to Ms. Jenks explaining the reporting and the purposes it serves.
If the bonds are retired on January 1, 2021, at 103, what will SIGE NA report as a loss on redemption? *see attached a. P 250,000b. P 365,000c. P 400,000d. P 425,000
Assume that the business has received notification on 15 April 2020 that a debtor owing $1,850 has declared bankruptcy. On 22 August 2020 the debtor unexpectedly remits full payment for the previously written-off account. Prepare the general journal entry to re-establish this debt and record payment under each of the following methods: (i) The direct write-off method (ii) The allowance method
presentation. EH.6 (LO 3), AP At December 31, 2022, the trading debt securities for Gwynn, Inc. are as follows. Fair Value Instructions Security A B C Total Cost $18,100 12,500 23,000 $53,600 $16,000 14,800 18,000 $48,800 a. Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. b. Show the balance sheet and income statement presentation at December 31, 2022, after adjustment to fair value. Prepare adjusting entry to record fair value, and indicate statement presentation.