Order Grade A+ Academic Papers Instantly!

Several times during 2007, Pal

Several times during 2007, Palmer Company issued short-term commercial paper totaling $7 million. On December 31, 2007, the company’s year-end, Palmer intends to refinance the commercial paper by issuing long-term debt. However, because of the temporary existence of excess cash, $3 million of the liability is liquidated in February 2008, as the commercial paper matures. On March 1, 2008 Palmer issues $9 million of long-term bonds, with $3 million of the proceeds going to replenish the working capital used to liquidate the $3 million of commercial paper, $4 million to pay the remaining balance of the commercial paper due after April, and the remaining $2 million to finance an equipment modernization program at Palmer’s plant. Palmer’s December 31, 2007 year-end are issued on March 13, 2008.

1. How will the $3 million of commercial paper liquidated prior to the refinancing be classified on Palmer’s December 31, 2007 balance sheet? Explain your reasoning.
2. How will the remaining $4 million of commercial paper be classified on Palmer’s December 31, 2007 balance sheet? Explain your reasoning.


15% off for this assignment.

Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!

Why US?

100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

Original Writing

We complete all papers from scratch. You can get a plagiarism report.

Money Back

If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.