Ask Question
18 June, 12:11

On September 1, 2018, Southwest Airlines borrows $40.7 million, of which $9.4 million is due next year. Show how Southwest Airlines would record the $40.7 million debt on its December 31, 2018, balance sheet. (Enter your answers in dollars, not in millions (i. e. 5 should be entered as 5,000,000).)

+3
Answers (1)
  1. 18 June, 12:51
    0
    Solution and Explanation:

    Current Liabilities is calculated as follows:

    Current portion of long term debt = 9400000

    Long term liabiities:

    Notes payable (40.7 - 9.40) = 31300000

    Total Liabilities = 40700000

    In order to calculate the total liabilities, all the current liabilities of a company and all the non-current liabilities of a company is to be added.

    Basically, the term liability means that a company has to pay some amount of money or it owes some amount of money to a third person.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On September 1, 2018, Southwest Airlines borrows $40.7 million, of which $9.4 million is due next year. Show how Southwest Airlines would ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers