How much of the ST Notes Payable should re-classed

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Question - Jenkins Corporation has $2,500,000 of short-term debt as of 12/31/2020. Jenkins has the intention and the ability to refinance the loan to LT. The company is working with a local bank and the bank has approved a refinancing loan of $2,300,000. It will take a few weeks to close. The loan should close by the end of January 2021, well before the audited financial statements are issued. How much of the $2,500,000 ST Notes Payable should be re-classed to Long Term Notes Payable on the 12/31/2020 Balance sheet?

Reference no: EM133058167

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