What amount of the note payable should be for lovely company

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Reference no: EM132806630

Problem 1: On December 31, 2020, Lovely Company had a P900,000 note payable outstanding due July 31, 2021. The entity planned to refinance the note by issuing long-term bonds. Because the entity temporarily had excess cash, it prepaid P300,000 of the note on January 15,2021. In February 2021, the entity completed a P1,500,000 bond offering. The entity will use the bond offering proceeds to repay the note payable at its maturity. On March 31, 2021, the 2020 financial statements were authorized for issue.What amount of the note payable should be included in current liabilities on December 31, 2020?

a. 900,000
b. 600,000
c. 0
d. P300,000

Reference no: EM132806630

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