9 a currently maturing obligation is presented as

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9.A currently maturing obligation is presented as current. Which of the followinginstances would a currently maturing obligation is nonetheless presented asnoncurrent?a.Refinancing is completed as of the end of reporting periodb.Refinancing made after the end of reporting period but before authorization offinancial statements for issue is at the discretion of the entityc.Grace period is received as of end of reporting period to rectify breach of loanarrangement ending at least 12 months after the end of reporting period.
d.In any of these situations10. Cali, Inc had a P4,000,000 note epayable due on March 15, 20x2.How should Cali classify the note in its December 31, 20x1 financial statements?
Problem 61.At December 31, 20x7, Cain, Inc., owed notes payable of P1,750,000 due onMay 15, 20x8. Cain expects to retire this debt with proceeds from the sale of100,000 shares. Of its common stock. The stock was sold for P15 per share onMarch 10, 20x8 prior to the issuance of the year-end financial statements. InCain’s December 31, 20x7 balance sheet what amount of the notes payableshould be included from current liabilities?
2.Pam, Inc., has P1,000,000 of notes payable due June 15, 20x6. At the financialstatement date of December 31, 20x5, Pam signed a agreement to borrow up toP1,000,000 to refinance the notes payable on a long term basis. The refinancingagreement is at the discretion of Pam, Inc. The financing agreement called forborrowings not to exceed 80% of the value of the collateral Pam was providing.At the date of issue of the December 31, 20x5, financial statements, the value ofthe collateral was P1,200,000 and was not expected to fall below this amountduring 20x6.In its December 31, 20x5, balance sheet, Pam should classifynotes payable as
3.Wilk Co reported the following liabilities at December 31, 20x1:Accounts payable-trade – 750,000Short-term borrowings – 400,000Bank loan, current portion P100,000 – 3,500,000Other bank loan, matures June 30, 20x2 – 1,000,000The bank loan of 3,500,000 was in violation of the loan agreement. The creditorhad not waived the rights for the loan. What amount should Wilk report as currentliabilities at December 31, 20x1?
4.Regal Department Store sells gift certificates, redeemable for store merchandisethat expire one year after their issuance. Regal has the following informationpertaining to its gift certificate sales and redemptions:Unredeemed at 12/31/20x2 – 75,0002008 sales – 250,0002008 redemption of prior year sales – 25,0002008 redemptions of current year sales – 175,000Regal’s experience indicates that 10% of gift certificates sold will not beredeemed. In its December 31, 20x3 balance sheet, what amount shoul Regalreport as unearned revenue?
5.Aneen’s Video Mart sells one and two year mail order subscriptions for its videoof the month business.Subscriptions are collected in advance and credited tosales. An analysis of the recorded sales activity revealed the following:20x220x3Sales420,000500,000Less: Cancellations20,00030,000Net Sales400,000470,000Subscriptions expirations:20x2120,00020x3155,000130,00020x4125,00200,00020x5140,000

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