How should the liabilities be recorded in the balance sheet

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Problem 1: A company has outstanding accounts payable of $30,000 and a short-term construction loan in the amount of $100,000 at year end. The loan was refinanced through issuance of long-term bonds after year end but before issuance of financial statements. How should these liabilities be recorded in the balance sheet?

A. Long-term liabilities of $130,000.

B. Current liabilities of $130,000.

C. Current liabilities of $30,000, long-term liabilities of $100,000.

D. Current liabilities of $130,000 with required footnote disclosure of the refinancing of the loan.

Reference no: EM132718782

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