Presented below are various account balances of K.D. Lang Inc.a) Unamortized premium on bonds payable, of which $3,000 will be amortized during the next year.b) Bank Joans payable of a winery, due March 10, 2021.(the product requires aging for 5 years before sale.)c) Serial bonds payable, $1,000,000 of which $200,000 are due each July 31.d) Amounts withheld from employees' wages for income taxes.e) Notes payable due January 15, 2000f) Credit balances in customers' accounts arising from returns and allowances after collection in full of account.g) Bonds payable of $2,000,000 maturing June 30, 2018h) Overdraft of $1,000 in a bank account(no other balances are carried at this bank)I) Deposits made by customers who have ordered goods.Instructions:  Indicate whether each of the items above should be classified on December 31, 2017 as a current liability, a long-term liability, or under some other classification. Consider each one independently from all others; that is, do not assume that all of them relate to one particular business. If the classification of some of the items is doubtful, explain why in each case.

Question
Asked Feb 13, 2020
19 views

Presented below are various account balances of K.D. Lang Inc.

a) Unamortized premium on bonds payable, of which $3,000 will be amortized during the next year.

b) Bank Joans payable of a winery, due March 10, 2021.(the product requires aging for 5 years before sale.)

c) Serial bonds payable, $1,000,000 of which $200,000 are due each July 31.

d) Amounts withheld from employees' wages for income taxes.

e) Notes payable due January 15, 2000

f) Credit balances in customers' accounts arising from returns and allowances after collection in full of account.

g) Bonds payable of $2,000,000 maturing June 30, 2018

h) Overdraft of $1,000 in a bank account(no other balances are carried at this bank)

I) Deposits made by customers who have ordered goods.

Instructions:  Indicate whether each of the items above should be classified on December 31, 2017 as a current liability, a long-term liability, or under some other classification. Consider each one independently from all others; that is, do not assume that all of them relate to one particular business. If the classification of some of the items is doubtful, explain why in each case.

check_circle

Expert Answer

Step 1

Bonds:  Bonds are long-term promissory notes that are issued by a company while borro...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: eBook E Calculator Print Item LLC net Income and statement ofr members"equity Instructions Chart of ...

A: a.   The division of net income of $371,700 is as below:

question_answer

Q: Carma Garcia opened Shifting Sands Cleaning Service on August 1, 2019. During August, the company co...

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...

question_answer

Q: Windsor Corporation had net sales of $2,404,900 and interest revenue of $38,100 during 2020. Expense...

A: Windsor Corporation’s condensed multiple-step income statement is prepared as follows:  

question_answer

Q: Gee Manufacturing produces two models of camshafts used in the production of automobile engines: Reg...

A: Expected global consumption ratio: An expected global consumption ratio is the proportion of the tot...

question_answer

Q: Obj. 2 BE 16-3 Factory overhead costs During May, Bergan Company incurred factory overhead costs as ...

A: There are 3 types of costs associated with the manufacturing of the product. They are direct, indire...

question_answer

Q: TRUE OR FALSE:  The specific provisions of a bond issue are described in a document called a bond in...

A: Bonds Bonds are a kind of interest bearing notes payable, usually issued by companies, universities...

question_answer

Q: PARRISH 4-6 ADJUSTING ENTRIES :THIRD TIME ASKING SAME QUESETION!! Please carefully and ACCURATELY an...

A: a.   Increase in accounts receivable should be debited, as it is a current asset. Sales are increase...

question_answer

Q: E5-6 two picture. It's on two pages

A: Requirement a:

question_answer

Q: ****Please just answer as much as you can. I can do the ones that require the tax table but need hel...

A: Payroll register: Payroll register is a form that is used by an employer to gather information on ea...