Problem 1-10 (AICPA Adapted)On December 31, 2022, Largo Company had a P750,000 notepayable outstanding due July 31, 2023. The entity plannedto refinance the note by issuing long-term bonds.Because the entity temporarily had excess cash, it prepaidP250,000 of the note on January 15, 2023.In February 2023, the entity completed a P1,500,000 bondoffering. The entity will use the bond offering proceeds torepay the note payable at maturity.On March 31, 2023, the 2022 financial statements wereauthorized for issue.What amount of the note payable should be included incurrent liabilities on December 31, 2022?a.750,000b. 500,000250,0000C.d.

The current liabilities are the portion of the liabilities which a company have taken and whose…

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What amount of the note payable should be included in current liabilities on December 31, 2022?

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

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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