At December 31, 2025, Metlock Corporation owes $539,800 on a note payable due February 15, 2026. (a) If Metlock had restructured the note on December 15, 2025, such that Metlock has the contractual right to defer payment of $269,900 of the note until February 15, 2027, how much of the $539,800 should be reported as a current liability at December 31, 2025? The amount to be reported as a current liability at December 31, 2025 $

At December 31, 2025, Metlock Corporation owes $539,800 on a note payable due February 15, 2026. (a) If Metlock had restructured the note on December 15, 2025, such that Metlock has the contractual right to defer payment of $269,900 of the note until February 15, 2027, how much of the $539,800 should be reported as a current liability at December 31, 2025? The amount to be reported as a current liability at December 31, 2025 $

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 28E: On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First...

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At December 31, 2017 (the end of the fiscal year), Bridgeport Corporation owes $1,600,000 on a note payable due January 31, 2018. (a) Your answer is incorrect. If Bridgeport refinances the obligation by issuing a long-term note on February 20, 2018 and using the proceeds to pay off the note due January 31, how much of the $1,600,000 should be reported as a current liability at December 31, 2017? Amount to be reported as a current liability at December 31, 2017 |
At December 31, 2018, Burr AG owes €500,000 on a note payable due February 2019. (a) If Burr intends to refinance the obligation by issuing a long-term note on February 14 and using the proceeds to pay off the note due February 15, how much (if any) of the €500,000 should be reported as a current liability at December 31, 2018? (b) If Burr pays off the note on February 15, 2019, and then borrows €1,000,000 on a long-term basis on March 1, how much (if any) of the €500,000 should be reported as a current liability at December 31, 2018, the end of the fiscal year?
At December 31, 2020, Burr Corporation owes $500,000 on a note payable due February 15, 2021. (a) If Burr had restructured the note on December 15, 2020, such that Burr has the contractual right to defer payment of $250,000 of the note until February 15, 2022, how much of the $500,000 should be reported as a current liability at December 31, 2020? (b) If Burr pays off the note on February 15, 2021, and then borrows $1,000,000 on a long-term basis on March 1, how much of the $500,000 should be reported as a current liability at December 31, 2020, the end of the fiscal year?
Indonesia Company had P2,000,000 note payable due on June 30, 2021. Under the existing loan facility on December 31, 2020, the entity had the discretion to refinance the note payable for at least 15 months after the end of the reporting period. On December 31, 2020, what amount of the note payable should be reported as non-current liability?
At December 31, 2025, Burr Corporation owes $500,000 on a note payable due February 15, 2026. (a) If Burr had restructured the note on December 15, 2025, such that Burr has the contractual right to defer payment of $250,000 of the note until February 15, 2027, how much of the $500,000 should be reported as a current liability at December 31, 2025? (b) If Burr pays off the note on February 15, 2026, and then borrows $1,000,000 on a long-term basis on March 1, how much of the $500,000 should be reported as a current liability at December 31, 2025, the end of the fiscal year? Burr issues the balance sheet on March 1, 2026
At December 31, 2017, Burr Corporation owes $500,000 on a note payable due February 15, 2018. (a) If Burr refinances the obligation by issuing a long-term note on February 14 and using the proceeds to pay off the note due February 15, how much of the $500,000 should be reported as a current liability at December 31, 2017? (b) If Burr pays off the note on February15, 2018, and then borrows $1,000,000 on a long-term basis on March 1, how much of the $500,000 should be reported as a current liability at December 31, 2017, the end of the fiscal year?
At December 31, 2017 (the end of the fiscal year), Bridgeport Corporation owes $1,600,000 on a note payable due January 31, 2018. (a) If Bridgeport refinances the obligation by issuing a long-term note on February 20, 2018 and using the proceeds to pay off the note due January 31, how much of the $1,600,000 should be reported as a current liability at December 31, 2017? Amount to be reported as a current liability at December 31, 2017 %24
Colt Company is indebted to Kent Company under an P8,000,000, 10%, 4 year note dated December 31, 2018. The interest of P800,000 was paid on December 31, 2019 and 2020. During 2021, Colt Company experienced financial difficulties and is likely to default unless concessions are made. On December 31, 2021, Kent Company agreed to restructure the debt as follows: A.Interest of P800,000 for 2021, due December 31, 2021 was made payable on December 31, 2022.B.Interest for 2022 was waived. C.The principal amount was reduced from P8,000,000 to P7,000,000. 1. What is the interest expense to be recognized for 2022? 2. The gain (loss) on extinguishment of debt is:
At December 31, 2017 (the end of the fiscal year), Bridgeport Corporation owes $1,600,000 on a note payable due January 31, 2018. (a) X Your answer is incorrect. If Bridgeport refinances the obligation by issuing a long-term note on February 20, 2018 and using the proceeds to pay off the note due January 31, how much of the $1,600,000 should be reported as a current liability at December 31, 2017? Amount to be reported as a current liability at December 31, 2017 %24
On September 1, 2020, SMD Company borrowed P5,000,000, 10% interest-bearing note due in five years. On December 31, 2020, the fair value of the note is determined to be P4,350,000. The entity elected irrevocably the fair value option in measuring the note payable. What amount of gain/loss from change in fair value of the note payable should be reported for 2020?
3. What should be reported as noncurrent liability from this transaction at December 31, 2021 after adjusting entries are made assuming that the effective interest method is used? * On January 1, 2021, Better Company sold property to Best Company. There was no established exchange price for the property, and Best gave Better a P,000,000 non-interest bearing note payable in 5 equal annual installments of P400,000, with the first payment due December 31, 2021. The prevailing rate of interest for a note of this type is 10%. The present value of the note at 10% was P758,160 at January 1, 2021. What should be the balance of the Discount on Notes Payable account on the books of Better Company at December 31, 2021 after adjusting entries are made assuming that the effective interest method is used? 2758,160 2633,976 497,374 2136,602 none of them
On December 31, 2019, Guimary Corporation is experiencing extreme financial pressure and is in default in meeting interest payment on its long-term note of P6,000,000 due on December 31, 2019. The interest rate is 10% payable every December 31. In an agreement with the creditor, Guimary Corporation obtained the following changes in the terms of the note: The accrued interest of P600,000 on December 31, 2019 is forgiven. The principal is reduced by P1,000,000. The new interest rate is 12%. The new date of maturity is December 31, 2024. At the time of restructuring, the market rate of interest was 10%. What is Guimary Corporation's gain on debt restructuring? P1,979,180 P1,600,000 P1,221,020 a. b. c. d. PO