Question

On December 31, 2017, Waterway Industries has $6010000 of short-term notes payable due on February 14, 2018. On January 10, 2016, Waterway arranged a line of credit with Beach Bank which allows Isle to borrow up to $4490000 at one percent above the prime rate for three years. On February 2, 2018, Waterway borrowed $3600000 from Beach Bank and used $1490000additional cash to liquidate $5090000 of the short-term notes payable. The amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2017 balance sheet which is issued on March 5, 2018 is

$1520000.

$2410000.

$0.

$890000.

Answer 1

will be due Generally, a note payable in one year. The borrower will classify it as a current liability. * If then long the note payable due it will be classified term (or non current after one and reported liability. year, as - In this case, due date is feb, 14 2018, Since the due date for hence it is classifed as non current liability. notes is lng term over and core on notes march payable 5, 2018 Shoot - term will be zero Answer's $0.