Swifty owes $ 3.6 million that is due on February 28. The company borrows $ 3000000 on February 25 (5-year note) and uses the proceeds to pay down the $ 3.6 million note and uses other cash to pay the balance. How much of the $ 3.6 million note is classified as long-term in the December 31 financial statements? $ 3600000. $0. $ 600000. $ 3000000.
Swifty owes $ 3.6 million that is due on February 28. The company borrows $ 3000000 on February 25 (5-year note) and uses the proceeds to pay down the $ 3.6 million note and uses other cash to pay the balance. How much of the $ 3.6 million note is classified as long-term in the December 31 financial statements? $ 3600000. $0. $ 600000. $ 3000000.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter17: Accounting For Notes And Interest
Section: Chapter Questions
Problem 1CE
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Swifty owes $ 3.6 million that is due on February 28. The company borrows $ 3000000 on February 25 (5-year note) and uses the proceeds to pay down the $ 3.6 million note and uses other cash to pay the balance. How much of the $ 3.6 million note is classified as long-term in the December 31 financial statements?
$ 3600000.
$0.
$ 600000.
$ 3000000.
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