Included in Sauder Corp.'s liability account balances at December 31, 2009 were thefollowing:1. 7% note payable issued October 1, 2009, maturing September 30, 2010 in the amount of$250,0002.8% note payable issued April 1, 2009, payable in six equal annual installments of $150,000beginning April 1, 2010 in the amount of $600,000Sauder's December 31, 2009 financial statements were issued on March 31, 2010. OnJanuary 15, 2010, the entire $600,000 balance of the 8% note was refinanced by issuance ofa long-term obligation payable in a lump sum. In addition, on March 10, 2010, Sauderconsummated a noncancelable agreement with the lender to refinance the 7%, $250,000note on a long term basis, on readily determinable terms that have not yet been implementedOn the December 31, 2009 balance sheet, the amount of the notes payable that Saudershould classify as short-term obligations is:$0O $50,000$125.000$175.000

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Answered: Included in Sauder Corp.'s liability…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...

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Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267
Included in Witt Company’s liability account balance at December 31, 2021 were the following: 14% note payable issued October 1, 2020 maturing September 30, 2022 500,000 16% note payable issued April 1, 2019 maturing April 1, 2022 800,000 Witt’s December 31, 2021 financial statements were issued on March 31, 2022. On January 15, 2022, the entire P800,000 balance of 16% note was refinanced by issuance of a long-term obligation payable in a lump sum. In addition, on March 10, 2022, Witt consummated a noncancelable agreement with the lender to refinance the 14%, P500,000 note on a long-term basis, on readily determinable terms that have not yet been implemented. Both parties are financially capable of honoring the agreement, and there have been no violations of the agreement’s provision. On the December 31, 2021 balance sheet, the amount of the notes payable that Witt should classify as current liability is
5. Included in Levis Corporationn’s liability account balances at December 31,2018, were the following: 14% note payable issued Oct 1,2017, maturing September 30,2019 1,250,000 16% note payable issued April 1,2016, due on April 2019 2,000,00 On December 31,2018, the company expects to refinance the P2,000,00 by the issuance of a long term note payable in lumpsum. The refinancing of the P2,000,00 is at the discretion of the enterprise. Levis Decemebr 31,2018 financial statements were issued on March 31,2019. On Jan 15,2019, the entire P2,00,000 balance of the 16% note was refinanced by issuance of a long term obligation payable. On December 31,2018 balance sheet, what amount of the notes payable should Levis classify as Long term obligation?
Remo Company reported the following liability balances on December 31, 2022: 12% note payable issued on October 1, 2021, maturing on October 1, 2023 - P2,000,000 10% note payable issued on March 1, 2021, maturing on March 1, 2023 - P4,000,000 The 2022 financial statements were issued on March 31, 2023. Under the loan agreement for the 12% note payable, the entity has the discretion to refinance the obligation for at least twelve months after December 31, 2022. On March 1, 2023, the entire P4,000,000 balance of the 10% note payable was refinanced through the issuance of a long-term obligation payable lump sum. What amount of the notes payable should be classified as noncurrent on December 31, 2022? A) P2,000,000 B) P6,000,000 P4,000,000 PO
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Included in Dwight Corporation's liability account balances at Dec. 31, 2021, were the following: 14% note payable issued Oct. 1, 2019, maturing Sept. 30, 2022 16% note payable issued Apr. 1, 2019, payable in six annual installments of P100,000 beginning Apr. 1, 2020 P250,000 400,000 Dwight's Dec. 31, 2021, financial statements were issued on Mar. 31, 2022. On Jan. 15, 2022, the entire P400,000 balance of the 16 percent note was refinanced by issuance of a long-term obligation payable in a lump sum. In addition, on Mar. 10, 2022, Dwight consummated a noncancelable agreement with the lender to refinance the 14 percent, P250,000 note on a long-term basis, on readily determinable terms that have not yet been implemented. Both parties are financially capable of honoring the agreement, and there have been no violations of the agreement's provisions. a. P100,000 b. P250,000 c. P300,000 d. P650,000 On the Dec. 31, 2021, statement of financial position, the amount of the notes payable that…
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ABC Corporation’s liability account balances at June 30, 2018, included a 10% notes payable in the amount of 3,600,000. The note is dated October 1, 2018, and is payable in three equal annual payments of 1,200,000 plus interest. The first interest and principal payment was made on october 1, 2018. In its June 30, 2019, financial statemnet, what amount should be recorded as accrued interest for this note?
Current Liabilities Included in Dwight Corporation's liability account balances at Dec. 31, 2021, were the following: 14% - note payable issued Oct. 1, 2019, maturing Sept. 30, 2022 P250,000 16% - note payable issued.Apr. 1, 2019, payable in six annual installments of P100,000 beginning Apr. 1, 2020 400,000 Dwight's Dec. 31, 2021, financial statements were issued on Mar. 31, 2022. On Jan. 15, 2022, the entire P400,000 balance of the 16 percent note was refinanced by issuance of a long-term obligation payable in a lump sum. In addition, on Mar. 10, 2022, Dwight consummated a noncancelable agreement with the lender to refinance the 14 percent, P250,000 note on a long-term basis, on readily determinable terms that have not yet been implemented. Both parties are financially capable of honoring the agreement, and there have been no violations of the agreement's provisions. On the Dec. 31, 2021, statement of financial position, the amount of the notes payable that Dwight…
The following liability account balances of ABC Company as of December 31, 2020: 12% Notes Payable, P2,800,000; and 10% Notes Payable, P2,000,000. Transactions during 2021 and other information relating to ABC Company’s liabilities were as follows: (a) The 12% note is dated May 1, 2020 and is payable in four equal annual installments of P700,000 beginning May 1, 2021. The first principal and interest payment were made on May 1, 2021; (b) The 10%, P2,000,000 loan payable will mature on July 1, 2022. Interest on the loan is due every July 1 and December 31. On December 1, 2021, the company entered into a refinancing agreement with a bank to refinance the loan on long-term basis. The refinancing and roll-over transaction were completed on December 31, 2021; and (c) On January 1, 2021, the company purchased delivery equipment by paying cash of P200,000 and issuing a non-interest bearing note payable of P2,000,000 due in four equal annual installments starting December 31, 2021. The…
On October 1, 2021, Smash Company discounted its own note of $500,000 at 10% for 1 year. In its statement of financial position on December 31, 2021, what is the carrying amount of notes payable to be presented as current liability by Smash Company?

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