On December 31, 2017, Whispering Company has $ 6,976,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2018. On January 28, 2018, Whispering enters into a refinancing agreement with Gotham that will permit it to borrow up to 64% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $ 5,984,000 in May to a high of $ 7,970,000 in October during the year 2018. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2022. Whispering’s December 31, 2017, balance sheet is issued on February 15, 2018. Prepare a partial balance sheet for Whispering at December 31, 2017, showing how its $ 6,976,000 of short-term debt should be presented.
On December 31, 2017, Whispering Company has $ 6,976,000 of short-term debt in the form of...
On December 31, 2017, Stellar Company has $6,953,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2018. On January 28, 2018, Stellar enters into a refinancing agreement with Gotham that will permit it to borrow up to 66% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5,950,000 in May to a high of $7,953,000 in October during the year 2018. The interest cost of...
On December 31, 2020, Marigold Company has $6,990,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2021. On December 28, 2021, Marigold enters into a refinancing agreement with Gotham that will permit it to borrow up to 60% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5,984,000 in May to a high of $7,987,000 in October during the year 2021. The interest cost of...
E13.9B (L0 2) (Refinancing of Short-Term Debt) On December 31, 2020, Gibson Company has $18,200,000 of short-term debt in the form of notes payable to Blue Lagoon State Bank due in 2021. On January 28, 2021, Gibson enters into a refinancing agreement with Blue Lagoon that will permit it to borrow up to 60% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $15,600,000 in May to a high of $20,800,000 in...
On December 31, 2020, Sage Company has $6,975,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2021. On December 28, 2020, Sage enters into a refinancing agreement with Gotham that will permit it to borrow up to 67% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5,983,000 in May to a high of $7,983,000 in October during the year 2021. The interest cost of...
On December 31, 2020, Ayayai Corporation has $7.95 million of short-term debt in the form of notes payable that are due in 2021 to Provincial Bank. On January 28, 2021, Ayayai enters into a refinancing agreement with the bank that permits it to refinance its debt by up to 61% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5 million in February and a high of $7 million in October during...
On December 31, 2020, Pina Colada Corporation has $8.71 million of short-term debt in the form of notes payable that are due in 2021 to Provincial Bank. On January 28, 2021, Pina Colada enters into a refinancing agreement with the bank that permits it to refinance its debt by up to 59% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5.9 million in February and a high of $8 million in...
On December 31, 2020, Whispering Company had $1,094,000 of short-term debt in the form of notes payable due February 2, 2021. On January 21, 2021, the company issued 24,000 shares of its common stock for $28 per share, receiving $672,000 proceeds after brokerage fees and other costs of issuance. On February 2, 2021, the proceeds from the stock sale, supplemented by an additional $422,000 cash, are used to liquidate the $1,094,000 debt. The December 31, 2020, balance sheet is issued...
On December 31, 2017, Ivanhoe Company had $1,107,000 of short-term debt in the form of notes payable due February 2, 2018. On January 21, 2018, the company issued 26,800 shares of its common stock for $29 per share, receiving $777,200 proceeds after brokerage fees and other costs of issuance. On February 2, 2018, the proceeds from the stock sale, supplemented by an additional $329,800 cash, are used to liquidate the $1,107,000 debt. The December 31, 2017, balance sheet is issued...
On December 31, 2017, Wildhorse Company had $1,313,000 of short-term debt in the form of notes payable due February 2, 2018. On January 21, 2018, the company issued 23,200 shares of its common stock for $45 per share, receiving $1,044,000 proceeds after brokerage fees and other costs of issuance. On February 2, 2018, the proceeds from the stock sale, supplemented by an additional $269,000 cash, are used to liquidate the $1,313,000 debt. The December 31, 2017, balance sheet is issued...
Exercise 13-8 On December 31, 2017, Marin Company had $1,133,000 of short-term debt in the form of notes payable due February 2, 2018. On January 21, 2018, the company issued 27,100 shares of its common stock for $29 per share, receiving $785,900 proceeds after brokerage fees and other costs of issuance. On February 2, 2018, the proceeds from the stock sale, supplemented by an additional $347,100 cash, are used to liquidate the $1,133,000 debt. The December 31, 2017, balance sheet...