Explanation Notes Payable: Notes payable are formal credit arrangements between creditor and a debtor that require payment of a specified face amount at a fixed maturity date. Journalizing: Journalizing is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the accounts are posted to the relevant ledger accounts. Accounting rules for journal entries: To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains. To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains. Following is the required journal entry passed for recording reclassification of short term debt to long term debt as on December 31, 2017. Date Account Title & Explanation Post ref. Debit ($) Credit ($) December 31, 2017 Short-term notes payable 100,000 Long-term notes payable 100,000 ( being notes payable reclassified recorded ) Table (1) Short-term notes payable is a current liability for the company...

Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)

2nd Edition

ISBN: 9780134833118

Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

Publisher: PEARSON

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Chapter 14, Problem 14.30BE

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To prepare: The journal to record the refinancing agreement under U.S GAAP.

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Chapter 14, Problem 14.29BE

Chapter 14, Problem 14.31BE

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Chapter 14 Solutions

Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)

Ch. 14 - What conditions or terms does a note payable...Ch. 14 - If the market rate of interest exceeds the face or...Ch. 14 - What is included in bond issue costs and how...Ch. 14 - Prob. 14.4Q Ch. 14 - When a bond is issued at a discount, will its...Ch. 14 - Prob. 14.6Q Ch. 14 - Prob. 14.7Q Ch. 14 - Under IFRS, how do firms account for convertible...Ch. 14 - Prob. 14.9Q Ch. 14 - Can companies reclassify short-term debt expected...

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The journal to record the refinancing agreement under U.S GAAP.

Solution Summary: The author explains the journal to record the refinancing agreement under U.S GAAP. Notes payable are formal credit arrangements between creditor and a debtor.

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To prepare: The journal to record the refinancing agreement under U.S GAAP.

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Chapter 14 Solutions