Amount of the short-term notes payable problem


On Dec31, 2010 Irey Co. has $2,000,000 of short-term notes payable due on February 14,2011. On Jan 10,2011, Irey arranged a line of credit with county bank which allows Irey to borrow up to $1,500,000 at 1% above the prime rate for 3 years. On february 2, 2011, Irey borrowed $1,200,00 from county bank and used $500,000 additional cash to liquidate $1,700,000 of the short-term notes payable. The amount of the short-term notes payable that should be reported as current liabilities on the Dec 31, 2010 balance sheet which is issued on March 5,2011 is ??

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Accounting Basics: Amount of the short-term notes payable problem
Reference No:- TGS084002

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