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On December 31,2025, Cheyenne Company has $6,955,000 of short-term debt in the form of notes...

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Accounting

On December 31,2025, Cheyenne Company has $6,955,000 of short-term debt in the form of notes payable to Gotham State Bank
due in 2026. On December 28,2025, Cheyenne enters into a refinancing agreement with Gotham that will permit it to borrow up to
57% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5,954,000 in May to a high of
$7,953,000 in October during the year 2026. The interest cost of the maturing short-term debt is 15%, and the new agreement calls
for a fluctuating interest at 1% above the prime rate on notes due in 2030. Cheyenne's December 31,2025, balance sheet is issued on
February 15,2026.
Prepare a partial balance sheet for Cheyenne at December 31,2025, showing how its $6,955,000 of short-term debt should be
presented. (Enter account name only and do not provide descriptive information.)
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