Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

As of December 31, 2020, closing date, Frye Co. owes a note payable for $ 6,000,000 due on February 14, 2021. On January 10,

As of December 31, 2020, closing date, Frye Co. owes a note payable for \ $ 6,000,000 due on February 14, 2021. On January 10, 2021, Frye finally obtained a bank loan of \ $ 4,500, 000 ^ at 12 \% for 5 years, which has already been negotiated since 2020. The loan will serve, in part, to pay the promissory note of \ $ 6,000,000 that will mature on February 14, 2021 When the due date arrived, Frye I settled the promissory note by writing a check from his checking account for \ $ 2,400,000 and using the funds from the bank loan to pay the remainder. Based on this data, what amount related to the promissory note should be disclosed as long-term debt as of December 31, 2020?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting, The Managerial Chapters

Authors: Tracie Miller Nobles, Brenda Mattison

13th Edition

0135982138, 9780135982136

More Books

Students also viewed these Accounting questions

Question

Name the different levels of the hierarchy of needs. (p. 264)

Answered: 1 week ago

Question

How does the EEOC interpret the national origin guidelines?

Answered: 1 week ago

Question

What is the purpose of the OFCCP?

Answered: 1 week ago