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At December 31, 2017, Culver Company has outstanding three long-term debt issues. The first is a...

Question:

At December 31, 2017, Culver Company has outstanding three long-term debt issues. The first is a $2,120,000 note payable which matures June 30, 2020. The second is a $6,020,000 bond issue which matures September 30, 2021. The third is a $13,240,000 sinking fund debenture with annual sinking fund payments of $2,648,000 in each of the years 2019 through 2023.

Prepare the required note disclosure for the long-term debt at December 31, 2017.

Long-term Debt:

The debt given for more than one year is known as the long-term goal. The debts for less than one year are short-term debt. The examples are the bank loans, credit loans, etc.

Answer and Explanation:

Year Long term Debt Working
2018 0
2019 2,648,000
2020 4,768,000 ($2,648,000+2,120,000)
2021 8,668,000 ($2,648,000+6,020,000)
2022 2,648,000

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Long-Term Debt: Definition, Cost & Formula

from Financial Accounting: Help and Review

Chapter 8 / Lesson 7
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