Ed O'Connor Associates reported short-termed notes payable as follows:
2012 2011
current liabilities (partial)
short-term n/p $16,700 $15,500
salary payable 3,800 3,200
During 2012 O'Connor paid off both current liabilities that were left over from 2011. During 2012, O'Connor borrowed money on short-term n/p and accrued salary expense during 2012.
To determine the amount O'Connor paid off for the current liabilities from 2011 and the amount borrowed on short-term notes payable in 2012, we need to subtract the amounts from 2011 and add the amounts from 2012.
1. Calculation for paid off current liabilities from 2011:
O'Connor paid off the short-term notes payable (n/p) and the salary payable from 2011.
Paid off amount = Current liabilities for 2011 - Current liabilities for 2012
For short-term notes payable:
Paid off n/p = $16,700 - $15,500
For salary payable:
Paid off salary = $3,800 - $3,200
2. Calculation for borrowed money on short-term notes payable in 2012:
O'Connor borrowed money on short-term notes payable during 2012, which is an increase from the previous year.
Borrowed amount = Current liabilities for 2012 - Current liabilities for 2011
Borrowed n/p = $15,500 - $16,700 (note that the result will be negative since it is an increase)
The values obtained from these calculations will give you the specific amounts O'Connor paid off and borrowed for the current liabilities in 2012.