a. Within the short-term obligations of Lance Company, as of December 31, 2011, the date on which the Balance Sheet is prepared, there are Notes payable to Madison National Bank in the amount of $ 250,000. They are 90-day notes, which can be renewed for an additional 90 days. These notes should be classified in the Lance Company's Statement of Situation as: Current liabilities. Deferred charges. Long-term liabilities. Intermediate obligations.
a. Within the short-term obligations of Lance Company, as of December 31, 2011, the date on which the Balance Sheet is prepared, there are Notes payable to Madison National Bank in the amount of $ 250,000. They are 90-day notes, which can be renewed for an additional 90 days. These notes should be classified in the Lance Company's Statement of Situation as: Current liabilities. Deferred charges. Long-term liabilities. Intermediate obligations.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....
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a. Within the short-term obligations of Lance Company, as of December 31, 2011, the date on which the Balance Sheet is prepared, there are Notes payable to Madison National Bank in the amount of $ 250,000. They are 90-day notes, which can be renewed for an additional 90 days. These notes should be classified in the Lance Company's Statement of Situation as:
Current liabilities.
Deferred charges.
Long-term liabilities.
Intermediate obligations.
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