On December 31, 2006, Frye Co has $2,000,000 of short term notes payable due on February 14, 2007 On January 10, 2007, Frye arranged a line of credit with County Bank which allows Frye to borrow up to $1,500,000 at one percent above the prime rate for three years On February 2, 2007, Frye borrowed ...

Computation of the note payable should be reported as curr ...

On December 31, 2006, Frye Co. has $2,000,000 of short-term notes payable due on February 14, 2007.

Question:

On December 31, 2006, Frye Co. has $2,000,000 of short-term notes payable due on February 14, 2007. On January 10, 2007, Frye arranged a with County Bank which allows Frye to borrow up to $1,500,000 at one percent above the prime rate for three years. On February 2, 2007, Frye borrowed $1,200,000 from County Bank and used $500,000 additional cash to liquidate $1,700,000 of the short-term notes payable. The amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2006 which is issued on March 5, 2007 is?

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... Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...