Multiple Choice
At December 31,2014,Strom Corp.owed notes payable of $1,000,000 with a maturity date of April 30,2015.These notes did not arise from transactions in the normal course of business.On February 1,2015,Strom issued $3,000,000 of ten-year bonds with the intention of using part of the bond proceeds to liquidate the $1,000,000 of notes payable.Strom's December 31,2014,financial statements were issued on March 29,2015.How much of the $1,000,000 notes payable should be classified as current in Strom's balance sheet at December 31,2014?
A) $0
B) $100,000
C) $900,000
D) $1,000,000
Correct Answer:
Verified
Correct Answer:
Verified
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