Question

The Braxton Co. has beginning long-term debt of $64,500, which is the principal balance of a loan payable to Centre Bank. During the year, the company paid a total of $16,300 to the bank, including $4,100 of interest. The company also borrowed $11,000. What is the value of the ending long-term debt?

Answer 1

$ 63300

Step-by-step explanation:

Given:

Beginning long term debt (Principal) = $ 64500

Payment made = $ 16300

Interest on the debt = $ 4100

Another borrowed amount = $ 11000

Now,

The ending long term debt = Beginning long term debt + Interest on the debt + borrowed amount - Payment made

on substituting the values in the above formula, we get

The ending long term debt = $ 64500 + $ 4100 + $ 11000 - $ 16300

or

The ending long term debt = $ 63300