Question

On September 1, 2021, Southwest Airlines borrows $39.4 million, of which $6.8 million is due next year. Show how Southwest Airlines would record the $39.4 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.)

Is there a long term liability?

Answer 1

$32,600,000

Step-by-step explanation:

The presentation of the liabilities section is presented below:

Balance sheet

Current liability

Current portion of long term debt $6,800,000

Long term liability

notes payable $32,600,000

Total liabilities $39,400,000

By this presentation, there is a long term liability of $32,600,000