The obligation by issuing a long-term note

Reference no: EM131050748

At December 31, 2014, Burr Corporation owes $500,000 on a note payable due February 15, 2015.

(a) If Burr refinances the obligation by issuing a long-term note on February 14 and using the proceeds to pay off the note due February 15, how much of the $500,000 should be reported as a current liability at December 31, 2014?

(b) If Burr pays off the note on February 15, 2015, and then borrows $1,000,000 on a long-term basis on March 1, how much of the $500,000 should be reported as a current liability at December 31, 2014, the end of the fiscal year?

Reference no: EM131050748

Questions Cloud

Important events in western history : Timeline, in chronological order, indicate what you would identify as the ten most important events in western history before 1600 CE. Briefly explain your selection of each event. (You do not have to give specific dates, but you do need to give..

Identify the market structure of the industry : Determine strategies that a company might use to develop product differentiation and market segmentation. What alternative non-pricing strategies are available? What alternative non-pricing strategies can be used to increase barriers to entry?

Describe time where you did not feel engaged or appreciated : Describe a time where you felt engaged, included, or appreciated in the task being done. Also, describe a time where you did not feel engaged, included, or appreciated.

Examples of progress could leaders : What examples of progress could leaders like W.E.B Du Bois, James Weldon Johnson, A.Philip Randolph, and Marcus Garvey point to in the 1920s?

The obligation by issuing a long-term note : (a) If Burr refinances the obligation by issuing a long-term note on February 14 and using the proceeds to pay off the note due February 15, how much of the $500,000 should be reported as a current liability at December 31, 2014?

Identify the relevant forces for change : Identify the relevant force(s) for change, Discuss how this force (these forces) might affect the company with respect to the business subject of the week, and make recommendations for what your company might/should do in response.

Contrast fascism and nazism and rise : Compare and contrast fascism and Nazism and their rise. Why might one be more effective than the other at attracting support?

Optimistic or pessimistic about future of our country : Are you optimistic or pessimistic about the future of our country? Why? About your own personal future?

Current liabilities of a corporate loan applicant : Leon Wight, a newly hired loan analyst, is examining the current liabilities of a corporate loan applicant. He observes that unearned revenues have declined in the current year compared to the prior year. Is this a positive indicator about the cl..

User Account

All Pages