The beginning and ending balances of long-term debt for the most recent fiscal year are $43,850 and $27,000,respectively.During the year,cash payments for long-term debt amounted to $23,450.How much new long-term debt was issued during the year?
A)$6,600
B)$20,400
C)$3,550
D)$16,850
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

The ending balance of long-term debt is calculated as the beginning balance plus new debt issued minus debt payments. Therefore, $27,000 = $43,850 + New Debt Issued - $23,450. Solving for New Debt Issued gives $6,600.

The Beginning and Ending Balances of Long-Term Debt for the Most