Business, 13.02.2020 19:54, kajjumiaialome

On December 31, 2020, Holmes Company has $7,000,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2021. On December 28, 2020, Holmes enters into a refinancing agreement with Gotham that will permit it to borrow up to 60% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $6,000,000 in May to a high of $8,000,000 in October during the year 2021. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2025. Holmes’s December 31, 2020, balance sheet is issued on February 15, 2021.
Instructions
Prepare a partial balance sheet for Holmes at December 31, 2020, showing how its $7,000,000 of short-term debt should be presented, including footnote disclosure.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 16:10, cgarnett5408

Aldrich and co. sold goods to donovan on credit. the amount owed grew steadily, and finally aldrich refused to sell any more to donovan unless donovan signed a promissory note for the amount due. donovan did not want to but signed the note because he had no money and needed more goods. when aldrich brought an action to enforce the note, donovan claimed that the note was not binding because it had been obtained by economic duress. was he correct? [aldrich & co. v. donovan, 778 p.2d 397 (mont.)]

Answers: 1

continue

Business, 22.06.2019 11:00, cedricevans41p4j3kx

The following information is available for ellen's fashions, inc. for the current month. book balance end of month $ 7 comma 000 outstanding checks 700 deposits in transit 4 comma 500 service charges 120 interest revenue 45 what is the adjusted book balance on the bank reconciliation?

Answers: 2

continue

Business, 22.06.2019 11:30, Merida06

12. to produce a textured purée, you would use a/an a. food processor. b. wide-mesh sieve. c. immersion blender d. food mill. student a incorrect which is correct answer?

Answers: 2

continue

Business, 22.06.2019 13:30, austinmiller3030

If the economy were in the contracting phase of the business cycle, how might that affect your ability to find work?

Answers: 2

continue

Do you know the correct answer?

On December 31, 2020, Holmes Company has $7,000,000 of short-term debt in the form of notes payable...