Question: A note payable liability came due (meaning it reached its maturity date) during the year, and the business decided not to renew (or rollover) this

A note payable liability came due (meaning it reached its maturity date) during the year, and the business decided not to renew (or rollover) this loan. Accordingly, the business paid $500,000 to the lender, and the note payable was cancelled. (All interest expense on this debt was recorded correctly during the year.) How did paying off the note payable change the business’s financial condition?

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