Question

On April 1, 2021, the Electronic Superstore borrows $21 million of which $6 million is due in 2022. Show how the company would report the $21 million debt on its December 31, 2021 balance sheet. (Enter your answers in dollars not in millions. For example, $7,000,000 rather than $7 million.)

Answer 1

Answer and Explanation:

The Preparation of balance sheet is shown below:-

Current liabilities

Current portion of long term Borrowings     $6,000,000

Long term Liabilities

Long term borrowings Borrowings              $15,000,000

($21,000,000 - $6,000,000)

Total liabilities                                                $21,000,000