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On December 31, 2021, L Inc. had a $1,600,000 note payable outstanding, due July 31, 2022. L borrowed the money

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On December 31, 2021, L Inc. had a $1,600,000 note payable outstanding, due July 31, 2022. 

L borrowed the money to finance construction of a new plant. 

L planned to refinance the note by issuing long-term bonds. 

Because L temporarily had excess cash, it prepaid $510,000 of the note on January 23, 2022. 

In February 2022, L completed a $3,100,000 bond offering. 

L will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during 2022. 

On March 13, 2022, L issued its 2021 financial statements. 

What amount of the note payable should L include in the current liabilities section of its December 31, 2021, balance sheet?

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To determine the amount of the note payable that should b View the full answer


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Related Book For  answer-question
Intermediate accounting

Intermediate accounting

ISBN: 978-0077647094

7th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

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Posted Date: July 07, 2023 07:52:20
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