On December 31, 2019, Carrboro Textile Company hard short-term debt in the form of notes payable totaling $600,000. These notes were due on June 1,2020. Carrboro expected to refinance these notes on a long-term basis. On February 1, 2020, Carrboro entered into an agreement with worldwide life insurance company whereby Worldwide will lend carrboro $450,000, payable in 5 years at 12%. The money will be available to Carrboro on May 20, 2020. Carrboro issues it December 31, 2019, year-end financial statements on March 2, 2020.
On December 31, 2019, Carrboro Textile Company hard short-term debt in the form of notes payable totaling $600,000. These notes were due on June 1,2020. Carrboro expected to refinance these notes on a long-term basis. On February 1, 2020, Carrboro entered into an agreement with worldwide life insurance company whereby Worldwide will lend carrboro $450,000, payable in 5 years at 12%. The money will be available to Carrboro on May 20, 2020. Carrboro issues it December 31, 2019, year-end financial statements on March 2, 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 31, 2019, Carrboro Textile Company hard short-term debt in the form of notes payable totaling $600,000. These notes were due on June 1,2020. Carrboro expected to refinance these notes on a long-term basis. On February 1, 2020, Carrboro entered into an agreement with worldwide life insurance company whereby Worldwide will lend carrboro $450,000, payable in 5 years at 12%. The money will be available to Carrboro on May 20, 2020. Carrboro issues it December 31, 2019, year-end financial statements on March 2, 2020.
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