Refinancing of Short-Term Debt

Essay

Refinancing of short-term debt
At their last year end, December 31, 2020, the liabilities outstanding of Copper Corp. included the following:
1. Cash dividends on common shares, $ 100,000, payable on January 15, 2021
2. Note payable to Manitoba Bank, $ 850,000, due January 20, 2021
3. Serial bonds, $ 2,000,000, of which $ 500,000 matures during 2021
4. Note payable to Ontario Bank, $ 200,000, due January 27, 2021
The following transactions occurred early in 2021:
January 15: The cash dividends were paid.
January 20: The note payable to Manitoba Bank was paid.
January 25: Copper entered into a financing agreement with Saskatchewan Bank, enabling it to borrow up to $ 1,000,000 at any time through the end of 2021. Amounts borrowed under the agreement would bear interest at 1% above the bank's prime rate and would mature 3 years from the date of the loan. The corporation immediately borrowed $ 800,000 to replace the cash used in paying its January 20 note to Manitoba Bank.
January 26: 40,000 common shares were issued for $ 300,000. $ 200,000 of the proceeds was used to pay off the note payable to Ontario Bank.
February 1: The financial statements for 2020 were issued.
Instructions
Prepare a partial statement of financial position for Copper Corp., showing the manner in which the above liabilities should be presented at December 31, 2020 under IFRS. The liabilities should be properly classified between current and long-term, and any appropriate note disclosure should be included.