On December 31, 2020, Salem Co. has $5,000,000 of short-term notes payable due on March 1, 2021. On December 23, 2020, Salem arranged to borrow up to $4,000,000 from Ahli Bank which will be provided with an additional cash $1.000.000 and used to liquidate $5,000,000 of the short-term notes payable. If the statement of financial position issues on March 15, 2021. The amount of the short-term notes payable that should be excluded from current liabilities and classified as long-term labilities on December 31, 2020, is OA SO. OB. $4,000,000 OC. $1,000,000. OD. $5,000,000.
On December 31, 2020, Salem Co. has $5,000,000 of short-term notes payable due on March 1, 2021. On December 23, 2020, Salem arranged to borrow up to $4,000,000 from Ahli Bank which will be provided with an additional cash $1.000.000 and used to liquidate $5,000,000 of the short-term notes payable. If the statement of financial position issues on March 15, 2021. The amount of the short-term notes payable that should be excluded from current liabilities and classified as long-term labilities on December 31, 2020, is OA SO. OB. $4,000,000 OC. $1,000,000. OD. $5,000,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On December 31, 2020, Salem Co. has $5,000,000 of short-term notes payable due on March 1, 2021. On December 23, 2020,
Salem arranged to borrow up to $4,000,000 from Ahli Bank which will be provided with an additional cash $1,000,000 and used to
liquidate $5,000,000 of the short-term notes payable. If the statement of financial position issues on March 15, 2021. The amount
of the short-term notes payable that should be excluded from current liabilities and classified as long-term liabilities on December
31, 2020, is:
A. SO.
OB. $4,000,000
OC. $1,000,000.
OD. $5,000,000.
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