You are part of the external audit leam auditing Coover Corporation's financial staternents for the year...

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You are part of the external audit leam auditing Coover Corporation's financial staternents for the year ending December 31, 2014. The audit engagement should be completed by mid- February and Coover anticipates publishing its financial statements, including your CPA firm's audit opinion, by February 28, 2015. Al December 31, 2014 Coover had a $100,000 outslanding note payable that was issued in 2011 and is due March 5, 2015. On January 10, 2015, Coover sold 1,000 shares of its 530 par value common stock for $90,000. Coaver intends to use the $90,000 proceeds plus $10,000 cash on hand to repay the note payable on Marcn 5. 2015. Coover has reported the $100,000 note payable as a current liability at December 31, 2014 because it will be paid off in the short-run. However, the audit senior isn't sure that is the correct way of reporting the note because it wasn't paid off with a current asset. The audit senior has assigned you the task of researching the proper reporting. Required: Draft a research memo addressing the note payable. Here is FASB Codification Database access information: Access using academic login link: http:/laaahg.org/ascLogin.cfm or http://aahq.org/FASB-GASB Student User Name - aaa84830 Password – h5hCH4x You are part of the external audit leam auditing Coover Corporation's financial staternents for the year ending December 31, 2014. The audit engagement should be completed by mid- February and Coover anticipates publishing its financial statements, including your CPA firm's audit opinion, by February 28, 2015. Al December 31, 2014 Coover had a $100,000 outslanding note payable that was issued in 2011 and is due March 5, 2015. On January 10, 2015, Coover sold 1,000 shares of its 530 par value common stock for $90,000. Coaver intends to use the $90,000 proceeds plus $10,000 cash on hand to repay the note payable on Marcn 5. 2015. Coover has reported the $100,000 note payable as a current liability at December 31, 2014 because it will be paid off in the short-run. However, the audit senior isn't sure that is the correct way of reporting the note because it wasn't paid off with a current asset. The audit senior has assigned you the task of researching the proper reporting. Required: Draft a research memo addressing the note payable. Here is FASB Codification Database access information: Access using academic login link: http:/laaahg.org/ascLogin.cfm or http://aahq.org/FASB-GASB Student User Name - aaa84830 Password – h5hCH4x

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RESEARCH MEMO Coover Corporations Note Payable Facts include 100000 outstanding note payable that wa... View the full answer