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Question - Verona Co. had $500,000 in current liabilities at the end of the current year related to a note payable due to ABC Bank in the next twelve months. Verona issued $400,000 of common stock subsequent to the end of the year, but before the financial statements were issued. The proceeds from the stock issue were intended to be used to pay the note payable due to ABC Bank. As it relates to this note payable, what amount should Verona report as a current liability on its balance sheet at the end of the current year?
Financial Statement Analysis and Preparation
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