Presented below are two different situations related to Mckee Corporation’s debt obligations. Mckee’s next financial reporting date is December 31, 2020. The financial statements are authorized for issuance on March 1, 2021.
1. Mckee has a long-term obligation of $400,000, which is maturing over 4 years in the amount of $100,000 per year. The obligation is dated November 1, 2020, and the first maturity date is November 1, 2021.
2. Mckee has a short-term obligation due February 15, 2021. Its lender agrees to extend the maturity date of this loan to February 15, 2023. The agreement for extension is signed on January 15, 2021.
Indicate how each of these debt obligations is reported on Mckee’s statement of financial position on December 31, 2020.
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