Business, 14.03.2020 00:10 1234Shutthedoor
On December 31, 20x4, Largo, Inc. had a $750,000 note payable outstanding, due July 31, 20x5. Largo borrowed the money to finance construction of a new plant. Largo planned to refinance the note by issuing long-term bonds. Because Largo temporarily had excess cash, it prepaid $250,000 of the note on January 12, 20x5.In February 20x5, Largo completed a $1,500,000 bond offering. Largo will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during 20x5. On March 3, 20x5, Largo issued its 20x5 nancial statements. What amount of the note payable should Largo include in the current liabilities section of its December 31, 20x4, balance sheet?
a. $250,000
b. $750,000
c. $500,000
d. $ 0
Answers: 2
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On December 31, 20x4, Largo, Inc. had a $750,000 note payable outstanding, due July 31, 20x5. Largo...
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