Solomon Construction Company reported the following amount on its balance sheet at the end of 2009 and

Question:

Solomon Construction Company reported the following amount on its at the end of 2009 and 2008 for notes payable:

Required:
1. If Solomon did not repay any notes payable during 2009, determine how much cash Solomon received from the issuance of notes payable.
2. If Solomon repaid $60,000 of notes payable during 2009, determine what amounts Solomon would report in the financing activities section of the statement of cashflows.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...