Montavon Winery has $3 million of short-term debt at the reporting date. The company then issues $2
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Question:
Montavon Winery has $3 million of short-term debt at the reporting date. The company then issues $2 million of long-term debt to partly refinance this obligation after the balance sheet date but before the financial statements are issued.
How should Montavon classify its short-term debt if it follows ASPE, assuming it uses the proceeds from the long-term debt issue to liquidate $2 million of the short-term liability?
Related Book For
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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