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Please select all the scenarios that would make the current note payable a long term liability 2. On 12/31/2018, Alexander Company had $1,200,000 of short-term
Please select all the scenarios that would make the current note payable a long term liability
2. On 12/31/2018, Alexander Company had $1,200,000 of short-term debt in the form of notes payable due 2/2/2019. The 12/31/2018 balance sheet is issued on 2/23/2019. The following scenarios are independent. Circle all scenarios where $1,200,000 notes payable can be classified as long-term liability on the 12/31/2018 balance sheet. (a) On 1/21/2019, the company raised $1,500,000 cash by issuing stocks. On 2/2/2019, $1,200,000 proceeds from the stock sale were used to liquidate the $1,200,000 debt. (b) On 2/2/2019, the company liquidated the $1,200,000 debt. On 2/9/2019, the company raised $1,500,000 cash by issuing stocks. (c) On 1/21/2019, the company borrowed $1,500,000 cash by issuing a 6-month note. On 2/2/2019, $1,200,000 proceeds from the 6-month note were used to liquidate the $1,200,000 debt. (d) On 1/21/2019, the company borrowed $1,500,000 cash by issuing a 5-year note. On 2/2/2019, $1,200,000 proceeds from the 5-year note were used to liquidate the $1,200,000 debt. (e) On 1/21/2019, the company reached an agreement with the creditor that the company will transfer a piece of land as the payment for $1,200,000 note payable. On 2/2/2019, the company liquidated the $1,200,000 debt by transferring the land to the creditorStep by Step Solution
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