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On September 1, 2021, Southwest Airlines borrows $39.4 million, of which $6.8 million is due next year. Show how Southwest Airlines would record the $39.4 million debt on its December 31, 2021, balance sheet.

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Tundexi

Answer:

                       Southwest Airlines

Partial Balance Sheet December 31, 2021

Current Liabilities

Current portion of long-term debt        $6,800,000

Long Term Liability

Notes Payable                                       $32,600.000

(39,4000,000-6,800,000)

Total Liabilities                                      $39,400,000

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