On December 31, 2020, Unger Co., (which reports under ASPE), has $4,000,000 of short-term notes payable due on February 14, 2021. On February 2, 2021, Unger arranged a long-term loan which is based on borrowing against 70% of its inventory cost value which will vary between $3,000,000 in May and $4,440,000 in November. It intends to use proceeds to pay the short-term notes payable due on February 14, 2021 and to pay the balance of it in cash. The amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2020 balance sheet that is issued on March 5, 2021 is a. $0. b. $1,600,000 c. $892,000. d. $1,900,000 e. $4,000,000.

On December 31, 2025, Sarasota Company has $7,070,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2026. On December 28, 2025, Sarasota enters into a refinancing agreement with Gotham that will permit it to borrow up to 56% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $6,080,000 in May to a high of $8,062.000 in October during the year 2026. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2030. Sarasota's December 31, 2025, balance sheet is issued on February 15, 2026. Prepare a partial balance sheet for Sarasota at December 31, 2025, showing how its $7,070,000 of short-term debt should be presented. (Enter account name only and do not provide descriptive information) SARASOTA COMPANY Partial Balance Sheet

On December 31, 2017, Firth Company borrowed $62,092 from Paris Bank, signing a 5-year, $100,000 zero-interest-rate note. The note was issued to yield 10% interest. Unfortunately, during 2019, Firth began to experience financial difficulty. As a result, at December 31, 2019, Paris Bank determined that it was probable that it would collect only $75,000 at maturity. The market rate of interest on loans of this nature is now 11%.Instructions(a) Prepare the entry (if any) to record the impairment of the loan on December 31, 2019, by Paris Bank.(b) Prepare the entry on March 31, 2020, if Paris learns that Firth will be able to repay the loan under the original terms.

On December 31, 2020, Oriole Company has $6,941,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2021. On December 28, 2020, Oriole enters into a refinancing agreement with Gotham that will permit it to borrow up to 52% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5,949,000 in May to a high of $7,947,000 in October during the year 2021. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2025. Oriole’s December 31, 2020, balance sheet is issued on February 15, 2021.Prepare a partial balance sheet for Oriole at December 31, 2020, showing how its $6,941,000 of short-term debt should be presented. (Enter account name only and do not provide descriptive information.) ORIOLE COMPANYPartial Balance Sheetchoose the accounting period                                                            select…

On January 1, 2020, Lynn Company borrows $3,000,000 from National Back at 11% annual interest. In addition, Lynn is required to keep a compensatory balance of $300,000 on deposit at Natinal Banck which will earn interest at 5% the effective interest that Lynn pays on its $3,000,000 loan is?

DBC Company has received a confirmation letter from the First National Bank of Miami (FNBM) about a line of credit for $12,000,000 on January 2, 2020. According to the terms of this short-term loan, DBC Company will be charged the following: A. ABC will be charged for 50 basis points interest (on an annual basis) for any unused amount of credit from the commencement of this agreement. B. Upon usage of any funds, the interest charge will be Prime rate plus 75 basis points. Prime rate at the commencement of this loan on January 2, 2020, was 5.25%. C. The following events took place in 2020: 1) On February 1, 2020; DBC Co., used $4,000,000 against its line of credit for its working capital purposes. 2) On May 1, 2020; DBC Co., used an additional $2,400,000 to purchase fixed assets. 3) On June 1, 2020, upon the meeting of F.O.M.C., the Fed announced its "Quantitative Easiness" policy and reduced the discount rate by 0.50 basis points. Immediately FNBM bank reflected the same reduction to…

On January 1, 2020, Caribou Explorations Limited (CEL) sold inventory costing $32,000 and, in exchange, received $6,000 cash and a $40,000 promissory note. The five-year note was repayable in equal annual instalments of $8,734 including interest at 7%. The market rate of interest for similar transactions was 7%. The first payment was due January 1, 2021. CEL has a December 31 year-end and follows IFRS. CEL uses the net method. CEL also extends generous payment terms to its many customers. As a result, the company has accumulated a substantial portfolio of accounts receivables. To improve cash flow, the company decided to sell some of its receivables to a factor. On June 30 2020, CEL factored $300,000 of its account receivables. CEL had previously checked the creditworthiness of its customers and is, therefore, confident that only a few accounts will be uncollectible. Therefore, the company chose to factor these receivables with recourse. In exchange for these receivables, the factor…

On February 10, 2021, after issuance of its financial statements for 2020, Sunland Company entered into a financing agreement with Cleveland Bank, allowing Sunland Company to borrow up to $8060000 at any time through 2023. Amounts borrowed under the agreement bear interest at 3% above the bank's prime interest rate and mature two years from the date of loan. Sunland Company presently has $3100000 of notes payable with Star National Bank maturing March 15, 2021. The company intends to borrow $4910000 under the agreement with Cleveland and liquidate the notes payable to Star National Bank. The agreement with Cleveland also requires Sunland to maintain a working capital level of $12050000 and prohibits the payment of dividends on common stock without prior approval by Cleveland Bank. From the above information only, the total short-term debt of Sunland Company as of the December 31, 2020 balance sheet date is $8060000. $0. $3990000. $3100000.

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. (Enter your answers in dollars not in millions. For example, $7,000,000 rather than $7 million.) Electronic Superstore Partial Balance sheet December 31st 2021   Current liabilities:       Long-term liabilities:       Total liabilities

Lincoln Company purchased merchandise from Grandville Corp. on September 30, 2021. Payment was made in the form of a noninterest-bearing note requiring Lincoln to make six annual payments of $5,000 on each September 30, beginning on September 30, 2024.Required:Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2021, assuming that an interest rate of 10% properly reflects the time value of money in this situation.