On December 31, 20X1, Largo, Inc ., had a $750,000 note payable outstanding, due July 31, 20X2. Largo borrowed the money to finance construction of a new plant. Largo planned to refinance the note by issuing long-term bonds. Because Largo temporarily had excess cash, it prepaid $250,000 of the note on January 12, 20X2. In February 20X2, Largo completed a $1,500,000 bond offering. Largo will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during 20X2. On March 3, 20X2, Largo issued its 20X1 financial statements. What amount of the note payable should Largo include in the current liabilities section of its December 31, 20X 1, balance sheet?
Answer:??
contrast that against….
At December 31, Year 1, Cain, Inc. owed notes payable of $1,750,000, due on May 15, Year 2. Cain expects to retire this debt with proceeds from the sale o f 100,000 shares of its common stock. The stock was sold for $15 per share on March 10, Year 2, prior to the issuance of the year-end financial statements. Jn Cain's December 3 1, Year 1, balance sheet, what amount of the notes payable should be excluded from current liabilities?
Answer:??
B - 80
A - 71, 67, 77
R - 71, 77
F - 72, 77
DONE!!
Becker Self-study all the way! Did use Ninja Notes & Audio for FAR.
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