On September 1, 2021, Southwest Airlines borrows $39.1 million, of which $6.2 million is due next year. Show how Southwest Airlines would record the $39.1 million debt on its December 31, 2021, balance sheet. (Enter your answers in dollars, not millions. For example, $5.5 million should be entered as 5,500,000.)

Question

Business

Iyana Short

27 November, 12:53

On September 1, 2021, Southwest Airlines borrows $39.1 million, of which $6.2 million is due next year. Show how Southwest Airlines would record the $39.1 million debt on its December 31, 2021, balance sheet. (Enter your answers in dollars, not millions. For example, $5.5 million should be entered as 5,500,000.)

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Answers (1)

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Piggy · Answer 1

The preparation is shown below:

Explanation:

The preparation is shown below:

Balance sheet

Current liability

current portion of long term debt $6,200,000

Long term liability

notes payable $32,900,000

Total liabilities $39,100,000

We simply classify the liabilities into two types i. e current liabilities and the long term liabilities