Coover Corporation’s financial statements for the year ending December 31, 2014.

At December 31, 2014 Coover had a $100,000 outstanding note payable that was issued in 2011 and is due March 5, 2015. On January 10, 2015, Coover sold 1,000 shares of its $30 par value common stock for $90,000. Coover intends to use the $90,000 proceeds plus $10,000 cash on hand to repay the note payable on March 5, 2015.

Can Coover report the $100,000 note payable as a current liability at December 31, 2014 because it will be paid off in the short-run? Or it is considered non-current liability?

How should it be reported?

Answer rating: 100% (QA)

Answer Current liability is a liability that is due within a year from the end of reporting peri... View the full answer