On December 31, 2011, Frye Co. has $5,100,000 of short-term notes payable due on February 14, 2012
On January 10, 2012, Frye arranged a line of credit with County Bank which allows Frye to borrow up to
$4,200,000 at one percent above the prime rate for three years. On February 2, 2012, Frye borrowed
$3,700,000 from County Bank and used $1,400,000 of existing cash to liquidate the $5,100,000 due on that date. The amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2011 balance sheet which were issued on March 5, 2012 is:
How would your answer change if Frye prepared its financial statements in accordance with iGAAP?