Jenkins Corporation Has $2,500,000 of Short-Term Debt It Expects to Retire

question 88

Multiple Choice

Jenkins Corporation has $2,500,000 of short-term debt it expects to retire with proceeds from the sale of 75,000 ordinary shares.If the shares are sold for $20 per share subsequent to the statement of financial position date, but before the statement of financial position is issued, what amount of short-term debt could be excluded from current liabilities?

• A)$1,500,000
• B)$2,500,000
• C)$1,000,000
• D)$0