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At December 31, 2021, Cordova Leather's liabilities include the following: 1. $15 million of noncallable 9% notes were issued for $15 million on August
At December 31, 2021, Cordova Leather's liabilities include the following: 1. $15 million of noncallable 9% notes were issued for $15 million on August 31, 1994. The notes mature on July 31, 2022. Sufficient cash is expected to be available to retire the notes at maturity. 2. $30 million of 8% notes were issued for $30 million on May 31, 2014. The notes mature on May 31, 2024, but investors have the option of calling (demanding payment on) the notes on June 30, 2022. However, the call option is not expected to be exercised, given prevailing market conditions. 3. $18 million of 10% notes are due on March 31, 2023. A debt covenant requires Cordova to maintain current assets at least equal to 150% of its current liabilities. On December 31, 2021, Cordova is in violation of this covenant. Cordova obtained a waiver from Village Bank until June 2022, having convinced the bank that the company's normal 2 to 1 ratio of current assets to current liabilities will be reestablished during the first half of 2022. Required: For each of the three liabilities, indicate how they should be reported on the balance sheet for the year ended December 31, 2021. (Enter your answers in millions (i.e., 10,100,000 should be entered as 10).) Liability type Amount 1. million 2 3. million million i
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