Question

On April 1, 2021, the Electronic Superstore borrows $23 million of which $7 million is due in 2022. Show how the company would report the $23 million debt on its December 31, 2021 balance sheet. (Enter your answers in dollars not in millions. For example, $7,000,000 rather than $7 million.)

Answer 1

Long term liabilities is $23,000,000

Step-by-step explanation:

Electronic Superstore

Balance Sheet (Not Full) at December 31, 2021

Details Amount ($)

Current liabilities NA

Long-term liabilities 23,000,000

Total liabilities 23,000,000

Note that the $7 million will due in 2022 not in 2021. Therefore, this does not effect on the 2021 balance sheet entries.