On December 31, 2015, Sunshine Company had $1,000,000 of short-term debt in the

Q: On December 31, 2015, Sunshine Company had $1,000,000 of short-term debt in the

Answer :- $ 400000 Partial Balance Sheet Current Liabilities:- Notes Payable $ 400000 Long Term Liabilities:- Notes Payable refinanced $ 800000 Total Liabilities $ 1200000

ID: 2714472 • Letter: O

Question

On December 31, 2015, Sunshine Company had $1,000,000 of short-term debt in the form of notes payable due February 2, 2016. On January 21, 2016, the company issued 20,000 shares of its common stock for $41 per share, receiving $800,000 proceeds after brokerage fees and other costs of issuance. On February 2, 2016, the proceeds from the stock sale, supplemented by additional $400,000 cash, are used to liquidate the $1,200,000 debt. The December 31, 2015, balance sheet is issued on February 23, 2016. The amount that should be reported as current liabilities on balance sheet as of December 31, 2015, related to this $1,000,000 debt would be:

$0.

$400,000.

$800,000.

$1,000,000.

Explanation / Answer

Answer :- $ 400000

Partial Balance Sheet

Current Liabilities:- Notes Payable $ 400000 Long Term Liabilities:- Notes Payable refinanced $ 800000 Total Liabilities $ 1200000

Navigate

On December 31, 2015, Rebel Corporation\'s balance sheet reported the following.

On December 31, 2015, Sveva Inc. has total liabilities of $112,000 and total equ

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.

On December 31, 2015, Sunshine Company had $1,000,000 of short-term debt in the

Question

Explanation / Answer

Related Questions

Navigate