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Tim’s Academy had $4,624,300 of bonds payable due in 2017.Prior to 12/31/2016, Tim refinanced $1,109,000 of...

Tim’s Academy had $4,624,300 of bonds payable due in 2017.Prior to 12/31/2016, Tim refinanced $1,109,000 of the bonds to mature in 2027.On January 15, 2017, Tim refinanced another $1,125,100of the bonds to mature in 2024.Tim issued its financial statements on February 1, 2017.On February 15, 2017, Tim refinanced the remaining amount of the bonds to mature in 2025.In its 2016 financial statements, under US GAAP Tim should show

Current bonds payable of: $____________________
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Under US GAAP, Short-term loans are classified as long term if the entity intends to refinance the loan on a long-term basis and the entity can demonstrate an ability to refinance the loan prior to when the balance sheet is issued or available to be issued.Hence, $1,125,100 refinanced On January 15, 2017 i.e before the balance sheet is issued is classified as long term

However, the remaining amount refinanced on February 15, 2017 i.e after the balance sheet is issued, is classified a Current

Hence, Current bonds payable= $4,624,300 - $1,109,000 - $1,125,100 = $2,390,200

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