On December 31, 2020, Vaughn Manufacturing has $6030000 of short-term notes payable due on February 14, 2021. On January 1 2019, Vaughn arranged a line of credit with Beach Bank which allows Vaughn to borrow up to $4470000 at one percent above the prime rate for three years. On February 2, 2021, Vaughn borrowed $3560000 from Beach Bank and used $1450000 additional cash liquidate $5120000 of the short-term notes payable. The amount of the short-term notes payable that should be reported as curren liabilities on the December 31, 2020 balance sheet which is issued on March 5, 2021 is Ⓒ$910000. O $0. O $2470000. O $1560000.

On December 31, 2020, Vaughn Manufacturing has $6030000 of short-term notes payable due on February 14, 2021. On January 1 2019, Vaughn arranged a line of credit with Beach Bank which allows Vaughn to borrow up to $4470000 at one percent above the prime rate for three years. On February 2, 2021, Vaughn borrowed $3560000 from Beach Bank and used $1450000 additional cash liquidate $5120000 of the short-term notes payable. The amount of the short-term notes payable that should be reported as curren liabilities on the December 31, 2020 balance sheet which is issued on March 5, 2021 is Ⓒ$910000. O $0. O $2470000. O $1560000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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