close solutoin list

Current portion of long-term debt PepsiCo, Inc, reported the following information about its long-term debt in the notes to a recent financial .statement (in millions): Long-term debt is comprised of the following: December 31 Total long term-debt Current Year Previous Year Less current portion $33,284 $28,897 Long-term debt (4.071) (5.076) $23,821 a. How much of the long-term debt was disclosed as a current liability on the current year's December 31 balance sheet? b. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-term debt? c. PepsiCo did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year?

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 11, Problem 11.8EX
Textbook Problem

Current portion of long-term debt

PepsiCo, Inc, reported the following information about its long-term debt in the notes to a recent financial .statement (in millions):

Long-term debt is comprised of the following:

  December 31
Total long term-debt Current Year Previous Year
Less current portion $33,284 $28,897
Long-term debt (4.071) (5.076)
$23,821
  1. a. How much of the long-term debt was disclosed as a current liability on the current year's December 31 balance sheet?
  2. b. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-term debt?
  3. c. PepsiCo did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year?

Expert Solution

A.

To determine

Long-term debt: Long-term debt refers to the obligation of the company to be paid after one year or one operating cycle whichever is longer. Generally, the long-term debt is reported under the long-term liabilities section of the balance sheet.

Current portion of long-term debt: The amount of debt which would be paid within one year is called as current portion of long-term debt. The current portion of long-term debt is reported as a current liability.

To identify: The amount of long-term debt that was disclosed as a current liability on the current year’s December 31 balance sheet.

Explanation of Solution

The current portion of long-term debt of $4,071 million of c...

Expert Solution

B.

To determine
The amount of change in total current liabilities between the preceding year and the current year as a result of the current portion of long-term debt.

Expert Solution

C.

To determine

To identify: The amount of total long-term debt on December 31 of the upcoming year.

Want to see this answer and more?

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

See solution

Chapter 11 Solutions

Accounting
Show all chapter solutions
Ch. 11 - Proceeds from notes payable On May 15, Maynard Co....Ch. 11 - Proceeds from notes payable On January 26, Nyree...Ch. 11 - Federal income tax withholding Tam Worldly's...Ch. 11 - Federal Income tax withholding Marsha Mellow's...Ch. 11 - Employee net pay Tam Worldlys weekly gross...Ch. 11 - Employee net pay Marsha Mellows weekly gross...Ch. 11 - Journalize period payroll The payroll register of...Ch. 11 - Journalize period payroll The payroll register of...Ch. 11 - Journalize payroll tax The payroll register of...Ch. 11 - Journalize payroll tax The payroll register of...Ch. 11 - Vacation pay and pension benefits Fukushima...Ch. 11 - Vacation pay and pension benefits Regling Company...Ch. 11 - Estimated warranty liability EarlKeen Co. sold...Ch. 11 - Estimated warranty liability Quantas Industries...Ch. 11 - Quick ratio Nabors Company reported the following...Ch. 11 - Quick ratio Adieu Company reported the following...Ch. 11 - Current liabilities Born Nebo Co. sold 25,000)...Ch. 11 - Entries for notes payable Cosimo Enterprises...Ch. 11 - Entries for discounting notes payable Ramsey...Ch. 11 - Evaluating alternative notes A borrower has two...Ch. 11 - Entries for notes payable A business issued a...Ch. 11 - Entries for discounted note payable A business...Ch. 11 - Entries for notes payable Bull City Industries is...Ch. 11 - Current portion of long-term debt PepsiCo, Inc,...Ch. 11 - Calculate payroll An employee cams 25 per hour and...Ch. 11 - Calculate payroll Breakin Away Company has three...Ch. 11 - Summary payroll data In the following summary of...Ch. 11 - Payroll tax entries According to a summary of the...Ch. 11 - Payroll entries The payroll register for Gamble...Ch. 11 - Payroll entries Urban Window. Company had gross...Ch. 11 - Payroll internal control procedures Big Howies Hot...Ch. 11 - Internal control procedures Dave's Scooters is a...Ch. 11 - Accrued vacation pay A business provides its...Ch. 11 - Pension plan entries Yuri Co. operates a chain of...Ch. 11 - Defined benefit pension plan terms In a recent...Ch. 11 - Accrued product warranty Parker Manufacturing Co....Ch. 11 - Accrued product warranty General Motors...Ch. 11 - Contingent liabilities Several months ago, Ayers...Ch. 11 - Quick ratio Gmeiner Co. had the following current...Ch. 11 - Quick ratio The current assets and current...Ch. 11 - Liability transactions The following items were...Ch. 11 - Entries for payroll and payroll taxes The...Ch. 11 - Wage and tax statement data on employer FICA tax...Ch. 11 - Payroll register The following data for Throwback...Ch. 11 - Payroll accounts and year-end entries The...Ch. 11 - Liability transactions The following items were...Ch. 11 - Entries for payroll and payroll taxes The...Ch. 11 - Wage and tax statement data and employer FICA tax...Ch. 11 - Payroll register The following data for Flexco...Ch. 11 - Payroll accounts and year-end entries The...Ch. 11 - Selected transactions completed by Kornett Company...Ch. 11 - Ethics in Action Tonya Latirno is a staff...Ch. 11 - Ethics in Action Marvin Turner was discussing...Ch. 11 - Communication WBM Motorworks is a manufacturer of...Ch. 11 - Recognizing pension expense The annual examination...Ch. 11 - Contingent liabilities Reynolds American, Inc.,...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
What were Elton Mayos conclusions from the Hawthorne Studies?

Foundations of Business (MindTap Course List)

What adverse effect might be caused by tax incentives to increase saving?

Brief Principles of Macroeconomics (MindTap Course List)

Define control. How are budgets used to control?

Managerial Accounting: The Cornerstone of Business Decision-Making

Give two differences between ASP and SaaS.

Accounting Information Systems

In what two ways can the information necessary to compute departmental gross profit be accumulated?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

EXPECTATIONS THEORY One-year Treasury securities yield 5%. The market anticipates that 1 year from now, 1-year ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Is savings harmful or beneficial to the economy? Contrast the two views on this issue.

Economics: Private and Public Choice (MindTap Course List)