Specify what amounts will be reported as a current liability and a long-term liability on the December 31, 2020 balance sheet:

Blue Sky Co. had $8.6 million in 15% notes, maturing in May 2021, that management intended to refinance on a long-term basis. In early March 2021, prior to the actual issuance of the 2020 financial statements, Blue Sky negotiated a line of credit with a commercial bank for up to $8.2 million any time during 2021. 

Any borrowings will mature two years from the date of borrowing.

Answer rating: 100% (QA)

The portion of the note payable that is due within one year is reported as c... View the full answer