EPIPHANY Co. has a 10%, P2,000,000 loan payable as of December 31, 20x1 that is maturing...
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EPIPHANY Co. has a 10%, P2,000,000 loan payable as of December 31, 20x1 that is maturing on July 1, 20x2. The loan is dated July 1, 19x1 and pays annual interest every July 1. On February 1, 20x2, EPIPHANY Co. entered into a refinancing agreement with a bank to refinance the loan on a long-term basis. Both parties are financially capable of honoring the agreement's provisions. EPIPHANY has the discretion to refinance or roll over the loan for at least twelve months from December 31, 20x1 under an existing loan facility. EPIPHANY's financial statements were authorized for issue on March 15, 20x2. How much is presented as current liability in EPIPHANY's 20x1 year-end financial statements? EPIPHANY Co. has a 10%, P2,000,000 loan payable as of December 31, 20x1 that is maturing on July 1, 20x2. The loan is dated July 1, 19x1 and pays annual interest every July 1. On February 1, 20x2, EPIPHANY Co. entered into a refinancing agreement with a bank to refinance the loan on a long-term basis. Both parties are financially capable of honoring the agreement's provisions. EPIPHANY has the discretion to refinance or roll over the loan for at least twelve months from December 31, 20x1 under an existing loan facility. EPIPHANY's financial statements were authorized for issue on March 15, 20x2. How much is presented as current liability in EPIPHANY's 20x1 year-end financial statements?
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To determine the amount that should be presented as a current liability in EPIPHANY Cos 20x1 yearend ... View the full answer
Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
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