How much of the notes payable should be classified

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At December 31, 2015, Roosevelt Corporation owed notes payable of P2, 000,000 with a maturity of April 30, 2016. These notes did not arise from transactions in the normal course of business. On February 1, 2016, Roosevelt issued P4,000,000 of ten-year bonds with the intention of using part of the bond proceeds to liquidate the P2,000,000 of notes payable. Roosevelt's 2015 financial statements were on March 29, 2016.

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Question 1: How much of the P2,000,000 notes payable should be classified as current liabilities in Roosevelt's statement of financial position at December 31, 2015?

Reference no: EM132578234

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