On December 31, 2018, Inc. had a $1,900,000 note payable outstanding, due July 31, 2019.

On December 31, 2018, Inc. had a $1,900,000 note payable outstanding, due July 31, 2019. L borrowed the money to finance construction of a new plant. L planned to refinance the note by issuing long-term bonds. In February 2019, L completed a $3,400,000 bond offering. L will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during 2019. On March 13, 2019, L issued its 2018 financial statement. What amount of the note payable should L include in the current liabilities section of its December 31, 2018 balance sheet?

Multiple Choice

$3400,000.

$1,360,000.

$1,900,000.

Solutions

Expert Solution

The amount of the note payable included in the current liability section of Balance sheet of Dec 31, 2018 = The amount outstanding in notes payable account on December 31, 2018

= $1,900,000

ekkarill92 answered 2 years ago

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