Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

VanGuard Goods fiscal year ends on December 31. At the end of the 2019 fiscal year, the company had notes payable of $12 million due

VanGuard Goods fiscal year ends on December 31. At the end of the 2019 fiscal year, the company had notes payable of $12 million due on February 8, 2020. VanGuard issued 2 million shares of common stock on February 2, 2020 for $9 million. The proceeds from that issuance along with $3 million from the maturation of some 3-month CDs were used to pay the notes payable on February 8. Vanguards financial statements were issued on February 23, 2020. What amount, if any, related to the notes payable described should VanGuard report among current liabilities on its December 31, 2018 balance sheet?

A$ 0.

B$ 3 million.

C.$ 9 million.

D.$12 million.

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

Real Estate Accounting And Reporting

Authors: Nicholas J. Cammarano, James J. Klink, Richard J. Behrens

3rd Edition

0471510696, 9780471510697

More Books

Students also viewed these Accounting questions