Coover Corporations financial statements for the year ending December 31, 2014. At December 31, 2014 Coover had
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Question:
Coover Corporation’s financial statements for the year ending December 31, 2014.
At December 31, 2014 Coover had a $100,000 outstanding note payable that was issued in 2011 and is due March 5, 2015. On January 10, 2015, Coover sold 1,000 shares of its $30 par value common stock for $90,000. Coover intends to use the $90,000 proceeds plus $10,000 cash on hand to repay the note payable on March 5, 2015.
Can Coover report the $100,000 note payable as a current liability at December 31, 2014 because it will be paid off in the short-run? Or it is considered non-current liability?
How should it be reported?
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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