What amount of the note payable should be included in current liabilities on December 31, 2022?
What amount of the note payable should be included in current liabilities on December 31, 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Problem 1-10 (AICPA Adapted)
On December 31, 2022, Largo Company had a P750,000 note
payable outstanding due July 31, 2023. The entity planned
to refinance the note by issuing long-term bonds.
Because the entity temporarily had excess cash, it prepaid
P250,000 of the note on January 15, 2023.
In February 2023, the entity completed a P1,500,000 bond
offering. The entity will use the bond offering proceeds to
repay the note payable at maturity.
On March 31, 2023, the 2022 financial statements were
authorized for issue.
What amount of the note payable should be included in
current liabilities on December 31, 2022?
a.
750,000
b. 500,000
250,000
0
C.
d.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6d675a3c-da70-4135-b9aa-098dc5a81669%2Fa6f0f468-a25d-488c-86b3-b85665510f8a%2Fedouwl_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 1-10 (AICPA Adapted)
On December 31, 2022, Largo Company had a P750,000 note
payable outstanding due July 31, 2023. The entity planned
to refinance the note by issuing long-term bonds.
Because the entity temporarily had excess cash, it prepaid
P250,000 of the note on January 15, 2023.
In February 2023, the entity completed a P1,500,000 bond
offering. The entity will use the bond offering proceeds to
repay the note payable at maturity.
On March 31, 2023, the 2022 financial statements were
authorized for issue.
What amount of the note payable should be included in
current liabilities on December 31, 2022?
a.
750,000
b. 500,000
250,000
0
C.
d.
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