Megga Brands, Inc. borrowed $ 1,500,000 from Telcity Bank. The note payable has a term of 15

Question:

Megga Brands, Inc. borrowed $ 1,500,000 from Telcity Bank. The note payable has a term of 15 years and carries a 4% interest. Due to an inadequate credit score, Megga Brands agreed to several restrictive debt covenants. The debt agreement requires the company to main-tain a compensating balance of $ 150,000. On December 15, Megga was forced to draw down on the compensating balance to meet working capital requirements. The loan became callable by Telcity on December 31 of the current year. On January 15, Telcity granted Megga a waiver and opted not to call its debt. Megga will release its annual to shareholders on February 15. How should Megga classify the $ 1,500,000 note payable on the December 31 under IFRS? Provide any necessary journal entries. Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...