Question
Included in Lockdown Corporation's liability account balances at December 31, 2019, were the following: 14% Note payable issued October 1, 2019, maturing September 30, 2020
Included in Lockdown Corporation's liability account balances at December 31, 2019, were the following:
14% Note payable issued October 1, 2019, maturing September 30, 2020 P250,000
16% Note payable issued April 1, 2017, payable in six annual installments
of P100,000 beginning April 1, 2018 400,000
Lockdown's December 31, 2019, financial statements were issued on March 31, 2020. On January 15, 2020, 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 March 10, 2020, Lockdown consummated a non-cancelable agreement with the lender to refinance the 14%, 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 December 31, 2019, Statement of Financial Position, how much of the notes payable that Lockdown should classify as non-current obligations?
(Can you send me rin po the solution? :( Thank you! :) )
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