On December 31, 2011, Frye Co

Multiple Choice

On December 31, 2011, Frye Co.has £4,000,000 of short-term notes payable due on February 28, 2012.On December 23, 2011, Frye arranged a line of credit with County Bank which allows Frye to borrow up to £3,500,000 at one percent above the prime rate for three years.On February 2, 2007, Frye borrowed £2,500,000 from County Bank and used £500,000 additional cash to liquidate £3,000,000 of the short-term notes payable.The amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2011 statement of financial position which is issued on March 15, 2012 is

A) $0.
B) $500,000.
C) $1,000,000.
D) $4,000,000.