Problem 1-11 (AICPA Adapted)Dean Company had a P2,000,000 note payable due June 30,2023. On December 31, 2022, the entity signed an agreementto borrow up to P2,000,000 to refinance the note payable ona long-term basis.The financing agreement called for borrowing not to exceed80% of the value of the collateral the entity was providing.On December 31, 2022, the value of the collateral wasP1,500,000.On December 31, 2022, what amount of the note payableshould be reported as current liability?a.b.C.d.2,000,0001,500,000800,000500,000Problem 1-12 (AICPA Adapted)Willem Company reported the following liabilities onDecember 31, 2022:Accounts payableShort-term borrowingsMortgage payable, current portion P100,000Bank loan payable, due June 30, 2023The P1,000,000 bank loan was refinanced with a 5-year loanon January 15, 2023, with the first principal payment dueJanuary 15, 2024.The financial statements were issued February 28, 2023.What total amount should be reported as current liabilitieson December 31, 2022?a. 1,150,000b. 2,250,0001,250,000850,000C.d.750,000400,0003,500,0001,000,000

The borrowings in problem 1-11 hasn't been taken yet. The entity has only signed the agreement and…

Problem 1-11 (AICPA Adapted) Dean Company had a P2,000,000 note payable due June 30, 2023. On December 31, 2022, the entity signed an agreement to borrow up to P2,000,000 to refinance the note payable on a long-term basis. The financing agreement called for borrowing not to exceed 80% of the value of the collateral the entity was providing. On December 31, 2022, the value of the collateral was P1,500,000. On December 31, 2022, what amount of the note payable should be reported as current liability?

Problem 1-11 (AICPA Adapted) Dean Company had a P2,000,000 note payable due June 30, 2023. On December 31, 2022, the entity signed an agreement to borrow up to P2,000,000 to refinance the note payable on a long-term basis. The financing agreement called for borrowing not to exceed 80% of the value of the collateral the entity was providing. On December 31, 2022, the value of the collateral was P1,500,000. On December 31, 2022, what amount of the note payable should be reported as current liability?

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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