1 At December 31, 2020, Crane Corporation owes $ 514,900 on a note payable due February 15, 2021.(a)If Crane had restructured the note on December 15, 2020, such that Crane has the contractual right to defer payment of $257,450 of the note until February 15, 2022, how much of the $ 514,900 should be reported as a current liability at December 31,2020?The amount to be reported as a current liability at December 31, 2020$ If Crane pays off the note on February 15, 2021, and then borrows $ 1,029,800 on a long-term basis on March 1, how much of the$514,900 should be reported as a current liability at December 31, 2020, the end of the fiscal year?The amount to be reported as a current liability at December 31, 2020|

A current liability is a debt that must be paid up either this year or next year, whichever comes…

Answered: At December 31, 2020, Crane Corporation…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 31CE

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On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.
On October 1, 2019, Grahams WeedFeed Inc. signs a contract to maintain the grounds for BigData Corp. The contract ends on March 31, 2020, and has a monthly payment of 3,200. The contract does not include any stipulations for additional periods. On June 1, Grahams WeedFeed and BigData sign a new 12-month contract that is retroactive to April 1, 2020. The monthly fee for the new contract is 4,000 per month and is also retroactive to April 1, 2020. During April and May of 2020, while the new contract was being negotiated, Grahams Weed Feed continued to maintain the grounds, and BigData continued to pay 3,200 per month. BigData was satisfied with Grahams WeedFeeds performance, and the only issue during negotiations was the monthly fee. Required: Determine if a valid contract exists between Grahams WeedFeed and BigData during April and May 2020.
On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000

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At December 31, 2020, Crane Corporation owes $ 514,900 on a note payable due February 15, 2021. (a)