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25 October, 15:26

On September 1, 2021, Southwest Airlines borrows $39.3 million, of which $6.6 million is due next year. Show how Southwest Airlines would record the $39.3 million debt on its December 31, 2021, balance sheet. (Enter your answers in dollars, not millions. For example, $5.5 million should be entered as 5,500,000.)

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  1. 25 October, 18:23
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    Balance sheet

    Current liability:

    Current portion of long term debt = $6,600,000

    Long term liability:

    Notes payable = ($39,300,000 - $6,600,000)

    = $32,700,000

    Therefore,

    Total liabilities = Current liabilities + Long term liabilities

    = $6,600,000 + $32,700,000

    = $39,300,000
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