Solution-Classify each of the liability whether current or

Classify each of the liability whether current or noncurrent

Assignment Help Financial Accounting

Reference no: EM132929457

AUDITING

CPALE INC. is a manufacturer and retailer of household furniture. Your audit of the company's financial statements for the year ended December 31, 2021, discloses the following debt obligations of the company at the end of its reporting period. CPALE's financial statements are authorized for issuance on March 6, 2022.
On January 1, 2018, CPALE acquired a building from OIL Co. In lieu of cash payment, CPALE gave OIL a 6-year, P36,000,000 non-interest bearing note payable. Principal is due in equal payments every December 31 beginning on December 31, 2018. The prevailing rate of interest for this type of note is 12.5%.
A long-term obligation of P3,600,000 on December 1,2021 . On December 20, 2021 CPALE breaches a covenant on its debt obligation and the loan becomes payable on demand. An agreement is reached to provide a waiver of the breach on December 31, 2021.
It has a debt obligation of P4,000,000 maturing on December 31, 2025. The debt is callable on demand by the lender at any time after January 1, 2022.
A P511,000 short-term obligation due on March 1, 2022. Its maturity could be extended to March 1, 2025, because CPALE has an unconditional right to defer the payment of this obligation until March 1,2025. On February 12, 2022 an agreement was reached to extend the loan's maturity to March 1, 2024.
A long-term obligation of P10,000,000. The loan is payable in the amount of P2,000,000 per year. The loan is dated January 1, 2021 and the first payment was also made on such date.
A long-term obligation of P6,900,000 in the form of notes payable due February 5, 2030. The company issued 75,000 ordinary shares for P63 per share on December 31, 2021. The proceeds from the issuance were used to fully settle the debt on February 5, 2022.

REQUIREMENTS:

Problem 1. Classify each of the liability whether current or noncurrent. JUSTIFY YOUR ANSWER by CITING the specific provision in the standard supporting your it.

Problem 2. Show the computation of the total current and noncurrent liability.

Reference no: EM132929457

Questions Cloud

Offering compensation to customers : The types of compensation offered to a customer will depend on organisational constraints. Briefly explain four (4) constraints that an organisation would have

What is the loan balance at the end of first installment : For the first payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance at the end of first installment?

What is the size of the final pension payment : What is the size of the final pension payment? Carla Tortelli receives pension payments of $4,570.00 at the end of every six months from a retirement fund

What could joanne do to gain employee buy-in and support : What could Joanne do to gain employee buy-in and support? How might she be able to make working on teams attractive to housekeeping employees?

Classify each of the liability whether current or noncurrent : Classify each of the liability whether current or noncurrent. JUSTIFY YOUR ANSWER by CITING the specific provision in the standard supporting your it.

Record all the entries from january to december : Record all the entries from January 1 to December 31, 2021 assuming the Ninety-percent of the change is due to a change in fair value

Identify the contributions of data interpretation : 1.how can cost accounting be utilized to achieve effectiveness in the marketing department?

Branch davidian standoff : Provide a historical overview of the facts of the Branch Davidian Standoff. Analyze the factor of police negotiation during the siege.

Trends and opportunities in human resource management : Outline current trends and opportunities in human resource management.

User Account

All Pages

Classify each of the liability whether current or noncurrent

Reference no: EM132929457

Reference no: EM132929457

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT