The beginning and ending balances of long-term debt for Rambler Corporation are $61,500 and $35,400,respectively.If cash payments of long-term debt are $35,100,how much new long-term debt was issued during the year?
A) $26,100
B) $61,800
C) $9,000
D) $61,200

Question

Quizplus · Accepted Answer

The new long-term debt issued can be calculated by adjusting the ending balance for cash payments and comparing it to the beginning balance. The calculation is: Ending balance + Cash payments - Beginning balance = New debt issued. So, $35,400 + $35,100 - $61,500 = $9,000.

The Beginning and Ending Balances of Long-Term Debt for Rambler