Project Planning

1622 WordsFeb 20, 20137 Pages
ACC-400Week 3 Individual Assignment (Exercises) Resource:Financial Accounting: Tools for Business Decision Making Prepare responses to the following assignment from the e-text: * Ch. 10: Questions 1, 7, 8, & 19; Brief Exercise BE10-1; and Financial Reporting Problem BYP10-1 * Ch. 11: Ethics Case: BYP11-10 Resources:Financial and Managerial Accounting: The Basis for Business Decisions Prepare responses to the following assignment from the e-text: Ch. 11: Internet Assignment 11-1 * * Problem 10.1 Georgia Lazenby believes a current liability is a debtthat can be expected to be paid in one year. Is Georgiacorrect? Explain. ANSWER Yes, Georgia Lazenbyhas the correct idea in her understanding of…show more content…
For each obligation, indicate whether it should be classifiedas a current liability ANSWER (a) Since the note is due in 2 years (longer than 1 year), it’s a long-term liability It isn’t a current liability. (b) The 10-year mortgage is a long-term liability. The $20,000 payment due this year is a current liability. (c) The interest is paid monthly, so it is a current liability. (d) Accounts payable are expected to be paid within a year, so this is a current liability. Problem BYP10-1 Refer to the financial statements of Tootsie Roll Industriesand the Notes toConsolidated Financial Statements in Appendix A. (a) What were Tootsie Roll’s total current liabilities at December 31, 2004? What was theincrease/decrease in Tootsie Roll’s total current liabilities from the prior year? (b) How much were the accounts payable at December 31, 2004? (c) What were the components of total current liabilities on December 31, 2004 (otherthan accounts payable already discussed above)? ANSWER (a) The total current liabilities at December 31, 2004 were$82,317,000. The total current liabilities at December 31, 2003 were $62,887,000. Hence, current liabilities increased during the prior year by $19,430,000. (b) The accounts payable at December 31, 2004
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