Question

On April 1, 2021, the Electronic Superstore borrows $21 million of which $7 million is due in 2022. Show how the company would report the $21 million debt on its December 31, 2021 balance sheet.

Electronic Superstore
Partial Balance Sheet
December 31, 2021
Current liabilities:
Long-term liabilities:
Total liabilities

Answer 1

Electronic Superstore

Partial balance sheet as at December 31, 2021

Current Liabilities

Current portion of long term debt 7,000,000

Long term liabilities

Notes payable 14,000,000

Total Liabilities 21,000,000