Question
The company has the following three loans payable scheduled to be repaid in February of next year. A. The company intends to repay Loan A,
The company has the following three loans payable scheduled to be repaid in February of next year.
A. | The company intends to repay Loan A, for $9,600, when it comes due in February. In the following September, the company intends to get a new loan for $8,000 from the same bank. |
B. | The company intends to refinance Loan B for $14,000 when it comes due in February. The refinancing contract, for $18,000, will be signed in May, after the financial statements for this year have been released. |
C. | The company intends to refinance Loan C for $18,000 before it comes due in February. The actual refinancing, for $17,700, took place in January, before the financial statements for this year have been released. |
As of December 31 of this year, compute:
1.) Total current liabilities.
2.) Total noncurrent liabilities.
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Total current liabilities 9600 14000 23600 Total noncurrent liabilities 17700 Ex...Get Instant Access to Expert-Tailored Solutions
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Intermediate Accounting
Authors: James D. Stice, Earl K. Stice, Fred Skousen
16th Edition
324376375, 0324375743I, 978-0324376371, 9780324375749, 978-0324312140
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