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

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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)

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