Question

Included and Levi Corporations liability account balances at December 31, 2006, where the following:
- 14% notes payable issued October 1, 2019, maturing
- September 30, 2021 P 1,250,000
- 16% note payable issued April 1, 2004, due on April 2021 2,000,000

On December 31, 2020, the company expects to refinance P 2,000,000 by the issuance of a long-term note payable in lump sum. The refinancing of the P 2,000,000 is at the discretion of the enterprise. Levi's December 31, 2020 financial statements were issued on March 31, 2021. On January 15, 2021, the
entire P 2,000,000 balance of the 60% note was refinanced the issuance of a long-term obligation
payable.
On December 31, 2020 balance sheet, what amount of the notes table should Levi's classify as short-
term obligation?

Answer 1

Shost term obligations of Levi Corporations as on December 31, 2020 1 14% notes payable 1,250,000 Esince due within 12 months from Balance sheet date I. 160/ notes payable of P.2,000,000 is. not due for payment at the end of reporting period. Because" entity has right to discreto. payment for at least 12 months after the reporting period, the notes should be classified as non-carrent. i 60.l. notes are Longterm