An amusement park has a very seasonal operation and must borrow on a line of credit to meet operational expenses through the winter months. On December 31, the park had used $36,500 of their $75,000 operating line of credit. How would this be shown on the balance sheet?

A :

the particulars would be disclosed in the notes to the financial statement

B :

current asset, $36,500 below cash and cash equivalents

C :

current liability, $75,000; a note to the statements detailing that $36,500 has been used

D :

current liability, $36,500; a note to the statements stating that the line of credit had a $75,000 limit