Company has a $50,000 operating line of credit and the company borrowed 45000 of this line at

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Company has a $50,000 operating line of credit and the company borrowed 45000 of this line at 6% interest on April 1. The bank will calculate interest due each month on the amount drawn from the line of credit and take this amount out of the company's chequing account on the last day of each month..

The company has an April 30 year end. Does this transaction give rise to amounts that should be reported in the current liabilities or the non-current liabilities section of the statement of financial position at April 30. Identify the account title, amount for the reported liability. Indicate any information that should be disclosed in the notes to the company's financial statements.

Posted Date: Apr 24, 2024 01:18 AM

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Company has a $50,000 operating line of credit and the company borrowed 45000 of this line at

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lets go through the transaction step by step and provide a detailed explanation along with the necessary reporting in the financial statements 1 Trans... View the full answer

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