Answer:
The amount of short term notes payable reported as Current liabilities (CL) on December 31, 2006 is $500,000
Explanation:
The amount of short term notes payable reported as Current liabilities (CL) on December 31, 2006 is computed as:
Amount of short term notes payable = Short term notes payable due on Feb 14 - Borrowed from County Bank
where
Short term notes payable due on Feb 14 is $2,000,000
Borrowed from County Bank is $1,500,000
Putting the values above:
Amount of short term notes payable = $2,000,000 - $1,500,000
Amount of short term notes payable = $500,000
