As of December 1, Year 2, a company obtained a $1,000,000 line of credit maturing in...
As of December 1, Year 2, a company obtained a $1,000,000 line of credit maturing in 1 year on which it has drawn $250,000, a $750,000 secured note due in 5 annual installments, and a $300,000 3-year balloon note. The company has no other liabilities. How should the company’s debt be presented in its classified balance sheet on December 31, Year 2, if no debt repayments were made in December?
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A. Current liabilities of $1,000,000; long-term liabilities of $1,050,000.
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B. Current liabilities of $400,000; long-term liabilities of $900,000.
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C. Current liabilities of $500,000; long-term liabilities of $800,000.
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D. Current liabilities of $500,000; long-term liabilities of $1,550,000.
Homework Answers
Ans-. (B)
Current liabilities of$ 400000 and , long-term Liabilities are $ 800000
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As of December 1, Year 2, a company obtained a $1,000,000 line
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