In Ruth Company's liability balances as of December 31, 2008 were the following:

Note payable at 10% issued on October 1, 2007, maturing on October 1, 2009 P2,000,000

Note payable at 12% issued on March 1, 2007, maturing on March 1, 2009 4,000,000

Ruth's 2008 financial statements were issued on March 31, 2009. Under the loan agreement for the 10% note payable, Ruth has the discretion to refinance the obligation for at least twelve months after December 31, 2008 On December 31, 2008, the entire P4,000,000 balance of the 12% note payable was refinanced through the issuance of a long-term lump sum note payable.

What amount of notes payable should be classified as current as of December 31, 2008?

Answer rating: 100% (QA)

As of December 31 2008 the following notes payable should be classified as current liabilities 1 The ... View the full answer