Question

On September 1, 2021, Southwest Airlines borrows $39.1 million, of which $6.2 million is due next year. Show how Southwest Airlines would record the $39.1 million debt on its December 31, 2021, balance sheet. (Enter your answers in dollars, not millions. For example, $5.5 million should be entered as 5,500,000.)

Answer 1

The preparation is shown below:

Step-by-step explanation:

The preparation is shown below:

Balance sheet

Current liability

current portion of long term debt $6,200,000

Long term liability

notes payable $32,900,000

Total liabilities $39,100,000

We simply classify the liabilities into two types i.e current liabilities and the long term liabilities