On December 31, 2019, Carrboro Textile Company hard short-term debt in the form of notes payable totaling $600,000. These notes were due on June 1,2020. Carrboro expected to refinance these notes on a long-term basis. On February 1, 2020, Carrboro entered into an agreement with worldwide life insurance company whereby Worldwide will lend carrboro $450,000, payable in 5 years at 12%. The money will be available to Carrboro on May 20, 2020. Carrboro issues it December 31, 2019, year-end financial statements on March 2, 2020.
On December 31, 2019, Carrboro Textile Company hard short-term debt in the form of notes payable totaling $600,000. These notes were due on June 1,2020. Carrboro expected to refinance these notes on a long-term basis. On February 1, 2020, Carrboro entered into an agreement with worldwide life insurance company whereby Worldwide will lend carrboro $450,000, payable in 5 years at 12%. The money will be available to Carrboro on May 20, 2020. Carrboro issues it December 31, 2019, year-end financial statements on March 2, 2020.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 14RE: On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment....
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On December 31, 2019, Carrboro Textile Company hard short-term debt in the form of notes payable totaling $600,000. These notes were due on June 1,2020. Carrboro expected to refinance these notes on a long-term basis. On February 1, 2020, Carrboro entered into an agreement with worldwide life insurance company whereby Worldwide will lend carrboro $450,000, payable in 5 years at 12%. The money will be available to Carrboro on May 20, 2020. Carrboro issues it December 31, 2019, year-end financial statements on March 2, 2020.
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