What amount of the note payable

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On December 31, 2021, L Inc. had a $1,800,000 note payable outstanding, due July 31, 2022. L borrowed the money to finance construction of a new plant. L planned to refinance the note by issuing long-term bonds. Because L temporarily had excess cash, it prepaid $530,000 of the note on January 23, 2022. In February 2022, L completed a $3,300,000 bond offering. L will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during 2022. On March 13, 2022, L issued its 2021 financial statements.

Question 1: What amount of the note payable should L include in the current liabilities section of its December 31, 2021, balance sheet?

Multiple Choice

  1. $0.
  2. $1,800,000.
  3. $530,000.
  4. $1,270,000

Reference no: EM132461403

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