A company reports $4.5 million of currently maturing debt on the statement of financial position at their year end. After this date and before the financial statements are issued, the company issues $4 million in long-term bonds. Assuming the company uses the proceeds from the long-term debt issue to liquidate $2 million of the short-term liability, how should the short-term debt be reported on the SFP?

Answer rating: 100% (QA)

After the issuance of the 4 million longterm bonds which are used to liquidate 2 million of t... View the full answer