Question

Marq Company pays off short-term debt of $40,000 on Jan. 17, 2015, and issues long-term debt of $100,000 on Feb. 3, 2015. Marq's financial statements, dated Dec. 31, 2014, are to be issued on Mar. 1, 2015. What would Marq's current and long-term liabilities be?

Answer 1

Marq Company's current liabilities would be $40,000, and its long-term liabilities would be $100,000.

Step-by-step explanation:

To find Marq Company's current and long-term liabilities, we need to consider the payment and issuance of debt. On January 17, 2015, Marq Company paid off short-term debt of $40,000, which would be classified as a current liability as it was due within one year. On February 3, 2015, Marq Company issued long-term debt of $100,000, which would be classified as a long-term liability as it is due more than one year from the date of issuance.

Therefore, Marq Company's current liabilities would be $40,000, and its long-term liabilities would be $100,000.