Parton owes $3 million that is due on February 28. The company borrows $2,400,000 on February 25 (5-year note) and uses the proc

Question

2 years ago

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Parton owes $3 million that is due on February 28. The company borrows $2,400,000 on February 25 (5-year note) and uses the proc

eeds to pay down the $3 million note and uses other cash to pay the balance. How much of the $3 million note is classified as long-term in the December 31 financial statements

Business

1 answer:

FromTheMoon [43] · Answer 1 · 2023-10-13T09:56:53+03:00

Answer:

$2,400,000

Explanation:

Based on the information given, How much of the $3 million note that is classified as long-term in the December 31 financial statements will be $2,400,000 because we were told that

Parton owes the amount of $3 million which is due on February 28 while the company borrows the amount of $2,400,000 on February 25 (5-year note) which means that the amount that the company borrowed on February 25 on a 5 year note will be classified as long-term in the December 31 financial statements.