Question

Cornerstone Markets has beginning long-term debt of $64,500, which is the principal balance of a loan payable to Centre Bank. During the year, the company paid a total of $16,300 to the bank, including $4,100 of interest. The company also borrowed $11,000. What is the value of the ending long-term debt?
A. $45,100
B. $53,300
C. $58,200
D. $63,300
E. $85,900

Answer 1

Answer:

D. $63,300

Explanation:

The increase in the liaiblities will be the interest and the new borrowings.

While the payment will make the liabilities decrease.

principal of               64,500

additional borrowing 11,000

accrued interest          4,100

total long term debt  79,600

payment to the banks 16,300

year-end balance        63,300