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11 May, 10:42

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.)

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  1. 11 May, 12:24
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    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
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