E9-5B: (Statement of Financial Position - Current vs Non-current Classification) KIWI Corporation is in the process of preparing its December 31, 2014, statement of financial position. There are some questions as to the proper classification of the following items: a. P 50,000 in cash set aside in a savings account to pay bonds payable. The bonds mature in 2018. b. Prepaid rent of P24,000, covering the period January 1, 2015, through December 31, 2016. c. Note payable of P200,000. The note is payable in annual installments of P20,000 each, with the first instalment payable on March 1, 2015. d. Accrued interest payable of P12,000 related to the note payable. e. Investment in trading securities of other corporations, P60,000. Cone intends to sell one-half of the securities in 2015. Instruction: Determine the current and non-current components of the above selected transactions using the table below. ASSETS LIABILITIES Current Non-current Current Non-current A В D E total

E9-5B: (Statement of Financial Position - Current vs Non-current Classification) KIWI Corporation is in the process of preparing its December 31, 2014, statement of financial position. There are some questions as to the proper classification of the following items: a. P 50,000 in cash set aside in a savings account to pay bonds payable. The bonds mature in 2018. b. Prepaid rent of P24,000, covering the period January 1, 2015, through December 31, 2016. c. Note payable of P200,000. The note is payable in annual installments of P20,000 each, with the first instalment payable on March 1, 2015. d. Accrued interest payable of P12,000 related to the note payable. e. Investment in trading securities of other corporations, P60,000. Cone intends to sell one-half of the securities in 2015. Instruction: Determine the current and non-current components of the above selected transactions using the table below. ASSETS LIABILITIES Current Non-current Current Non-current A В D E total

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 5QE

See similar textbooks

Similar questions

Cone Corporation is in the process of preparing its December 31, 2024, balance sheet. There are some questions as to the proper classification of the following items: $52,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. Prepaid rent of $26,000, covering the period January 1, 2025, through December 31, 2026. Notes payable of $204,000. The notes are payable in annual installments of $22,000 each, with the first installment payable on March 1, 2025. Accrued interest payable of $14,000 related to the notes payable is due June 30, 2025. Investment in equity securities of other corporations, $84,000. Cone intends to sell one-half of the securities in 2025. Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported.
The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1, 2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securities that is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be held until their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costing P29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, and treasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bond retirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds…
On December 31, 2020, Glare Company provided the following information: Accounts payable, including deposits and advances from customer of P250,000 Notes payable, including note payable to bank due on December 31, 2022 of P500,000 Shared dividend payable Credit balances in customer's accounts Serial bonds payable in semiannual installment of P500,000 Accrued interest on bonds payable Contested BIR Assessment - possible obligation Unearned rent income P1,250,000 P1.500.000 P400,000 P200.000 P5.000.000 P150,000 P300.000 P100,000 Notes: 1. Total liabilities of the Company amounted to P10,000,000 2. There are no other noncurrent liabilities of the Company aside from those listed above
The following information was provided by a company regarding its currently maturing obligations as of December 31, 2021: On December 31, 2021, the company had P1,000,000 short-term notes payable due February 14, 2022. On January 15, 2022, the company issued bonds with a face value of P900,000. The proceeds from the issuance of bond plus additional cash held by the company on December 31, 2021, were used to liquidate the P1,000,000 of short-term notes. A P500,000 notes payable is due on March 15, 2022. On December 31, 2021, the company signed an agreement to borrow up to P500,000 to refinance the notes payable on a long-term basis. The financing agreement called for borrowings not to exceed 80 percent of the value of collateral the company was providing. At the date of issue of the December 31, 2021 financial statements, the value of collateral was P500,000 and was not expected to fall below this amount during 2022. The financial statements of the company were authorized to be issued…
The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1,2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securitiesthat is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be helduntil their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costingP29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, andtreasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bondretirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds payable…
The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1,2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securitiesthat is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be helduntil their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costingP29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, andtreasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bondretirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds payable…
Rogers Corporation carries an account in its general ledger called Investments, which contained the following debits for investment purchases and no credits. Feb. 1, 2020 Jordy Company common stock, $100 par, 200 shares $ 37,400 April 1 U.S. government bonds, 5%, due April 1, 2030, interest payable April 1 and October 1, 100 bonds at $1,000 each 100,000 July 1 Driver Company 6% bonds, par $50,000, dated March 1, 2016, purchased at par plus accrued interest, interest payable annually on March 1, due March 1, 2040 51,000 Instructions a. Prepare entries necessary to classify the amounts into proper accounts, assuming that all the bonds are classified as available-for-sale. b. Prepare the entry to record the accrued interest on December 31, 2020. c. The fair values of the securities on December 31, 2020, were: Jordy Company common stock $ 33,800 (1% of total shares) U.S. government bonds 124,700 Driver Company bonds 58,600 What entry or entries, if any,…
Mana Company had P5,000,000 note payable due on March 1, 2020. The entity borrowed P3,500,000 on February 1, 2020 which had a five-year term and used the proceeds to pay down the note and used other cash to pay the balance. The December 31, 2019 financial statements were issued on March 31, 2020. What amount of the note payable should be classified as noncurrent on December 31, 2019?
MW Company had the following activities in 2019 issuance of bonds OMR65000 , Bank loan repaid OMR75000 , dividends paid OMR30000 , issue of common stock OMR33000 and sale of inventories OMR50000 Cash from Financing activities is : O a . OMR 42000 Ob . OMR 7000 O c . None of the options O d . OMR ( 7000 )
At December 31, 2017, Hyasaki Corporation has the following account balances: Bonds payable, due January 1, 2026 $2,000,000 Discount on bonds payable 88,000 Interest payable 80,000 Show how the above accounts should be presented on the December 31, 2017, balance sheet, including the proper classifications.
Entity A has the following liabilities as of December 31, 2021. a. Trade accounts payable, net of debit balance in supplier's account of P10,000, net of unreleased checks of P8,000, and net of postdated checks of P4,000 P600,000 b. Credit balance in customers’ accounts 4,000 c. Financial liability designated at FVPL 100,000 d. Bonds payable maturing in 10 equal annual installments of P200,000 2,000,000e. 12%, 5-year note payable issued on Oct. 1, 20x1 200,000 f. Deferred tax liability 10,000 g. Unearned rent 8,000 h. Contingent liability 20,000 i. Reserve for contingencies 50,000 j. Income taxes withheld from employees 50,000 k. Cash in bank at Siniloan Bank 352,000 l. Cash overdraft at Famy Bank 60,000m. Estimated premium claims outstanding 70,000n. Claims for increase in wages covered in a pending lawsuit 190,000 Requirement: How much is the total current liabilities? a. 2,430,000 c. 968,000 b. 1,120,000 d. 940,000
Catriona Company disclosed the following information on December 31, 2021: SSS payable P20,000 Notes Payable P40,000 Deferred tax liability P10,000 Notes payable due to bank, 12% interest bearing note payable yearly,issued on August 31, 2021, maturing on August 31, 2022 P1,000,000 Note: In the case of the notes payable due to bank, supposing the entity has the discretion to refinance the obligation for at least 12 months after the given maturity date (not reporting period), as seen in its loan agreement, Compute for the current liabilities as of December 31, 2021