Presented below are two different situations related to Mckee Corporation debt obligations Mckees next financial reporting date is December 31, 2012 The financial statements are authorized for issuance on March 1, 2013 1 Mckee has a long term obligation of $400,000, which is maturing over 4 years i...

1 Mckee should classify 100000 of the obligation as a current maturity of longterm deb ...

Presented below are two different situations related to Mckee Corporation debt obligations. Mckees next financial reporting date

Question:

Presented below are two different situations related to Mckee debt obligations. Mckee’s next financial reporting date is December 31, 2012. The are authorized for issuance on March 1, 2013.
1. Mckee has a long-term obligation of $400,000, which is maturing over 4 years in the amount of $100,000 per year. The obligation is dated November 1, 2012, and the first date is November 1, 2013.
2. Mckee has a short-term obligation due February 15, 2013. Its lender agrees to extend the date of this loan to February 15, 2015. The agreement for extension is signed on January 15, 2013.
Instructions
Indicate how each of these debt obligations is reported on Mckee’s statement of financial position on December 31, 2012.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...