Question
Montana Co. has the following liabilities at its calendar year-end 2021. Determine the total amount of its long-term liabilities to be reported on its December
Montana Co. has the following liabilities at its calendar year-end 2021. Determine the total amount of its long-term liabilities to be reported on its December 31, 2021 balance sheet.
1. $150,000 bank overdraft.
2. $1,000,000 preferred stock that will be mandatorily redeemed on July 1, 2027.
3. $500,000, 7% note payable due March 1, 2022. A bank has agreed to refinance this note for three years. The refinancing will be completed before the issuance of Montana's financial statements in February 2022.
4. Montana has violated the agreement with the bondholders, causing $3,000,000, 6% bonds payable to be due on February 1, 2022 instead of the January 1, 2025 original due date.
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