can you solve this question for me as fast as you can I need it...
70.2K
Verified Solution
Link Copied!
Question
Accounting
can you solve this question for me as fast as you can I need it urgently
At December 31, 2020, Calamari Corporation owes $500,000 on a note payable due February 15, 2021. Assume that Calamari follows IFRS and that the financial statements are completed and released on February 20, 2021. (a) If Calamari refinances the obligation by issuing a long-term note on February 14 and by using the proceeds to pay off the note due on February 15, how much of the $500,000 should be reported as a current liability at December 31, 2020? (2 marks) (b) If Calamari pays off the note on February 15, 2021, and then borrows $1 million on a long-term basis on March 1, how much of the $500,000 should be reported as a current liability at December 31, 2020? (1 marks) (c) How would the answers to parts (a) and (b) be different if Calamari prepared financial statements in accordance with ASPE? (a-1 mark, b-1 mark)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
