FINAN. AND MANAGERIAL ACCT. CONNECT+PROC
9th Edition
ISBN: 9781265925239
Author: Wild
Publisher: MCG CUSTOM
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Chapter 9, Problem 2QS
To determine
Concept Introduction:
Current portion of long-term debt is the portion of long-term debt due in the current year, it is reported as current liabilities in the balance sheet. The current portion of long-term debt is an important tool used to ascertain the company’s ability to pay its short-term debts.
The liabilities section of the year-end balance sheet, that reports the current portion of long-term debt.
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Preparing a Debt Disclosure
As of December 31 of Year 1, Dole Company's long-term debt consisted of the following:
• $114,300-Unsecured note payable to bank due Year 2.
• $405,000 -Unsecured note payable to bank due Year 4.
• $540,000 --Unsecured note payable to bank due Year 6.
• $81,000-Secured mortgage payable to bank due in equal installments in Year 2 through Year 6.
.
• $144,000-Secured note payable to bank due in Year 7.
Prepare the required financial statement disclosure at December 31 of Year 1, indicating the amounts due in each of the next five years and thereafter.
Note Payable
Year 3
Year 4
Year 5
Year 6
Year 2
114,300 $
0 ✓
0✔
40,500 *
0 ✓
154,800 $
Total
$114,300 $
405,000
540,000
81,000
144,000
$
0✔ $
0✔
0✔
0 x
0✔
0 $
0✔ $
405,000 ✓
0 ✓
0 x
0 ✓
405,000 $
0✔ $
0✔
0 ✓
0 x
0 ✓
0 $
0✔ $
0✔
540,000 ✓
40,500 x
0 ✓
580,500 $
Thereafter
0✓
0✔
0 ✓
0 ✓
144,000 ✓
144,000
The Company issued a short-term debt of $65,000 on July 1, 2021 for a period of 5 months with a note payable of 14% interest. The company uses the accounting period on a quarterly basis.
Required: Prepare the journal entries needed to record the issuance of the debt, recognize interest expense, and pay off the debt as it matures.
Note: Include the current method of processing and the excel formula
Current portion of long-term debt
Connie's Bistro, Inc. reported the following information about its long-term debt in the notes to a recent financial statement (in millions):
Long-term debt consists of the following:
December 31 December 31
Current Year Preceding Year
Total long term-debt
$784,700
$431,600
Current portion
(227,600)
(211,900)
Long-term debt
$557,100
$219,700
a. How much of the long-term debt was disclosed as a current liability on the current year's December 31 balance sheet?
million
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?
million Increase
c. If Connie's Bistro did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming
year?
million
Chapter 9 Solutions
FINAN. AND MANAGERIAL ACCT. CONNECT+PROC
Ch. 9 - Prob. 1QSCh. 9 - Prob. 2QSCh. 9 - Prob. 3QSCh. 9 - Prob. 4QSCh. 9 - Prob. 5QSCh. 9 - Prob. 6QSCh. 9 - Prob. 7QSCh. 9 - Prob. 8QSCh. 9 - Prob. 9QSCh. 9 - Prob. 10QS
Ch. 9 - Prob. 11QSCh. 9 - Prob. 12QSCh. 9 - Prob. 13QSCh. 9 - Prob. 14QSCh. 9 - Prob. 15QSCh. 9 - Prob. 16QSCh. 9 - Prob. 17QSCh. 9 - Prob. 18QSCh. 9 - Prob. 19QSCh. 9 - Prob. 20QSCh. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 - Prob. 3ECh. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Exercise 9-5 Computing payroll taxes P2 P3 BMX...Ch. 9 - Prob. 8ECh. 9 - Prob. 9ECh. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Prob. 13ECh. 9 - Prob. 14ECh. 9 - Prob. 15ECh. 9 - Prob. 16ECh. 9 - Prob. 17ECh. 9 - Prob. 18ECh. 9 - Prob. 19ECh. 9 - Prob. 20ECh. 9 - Prob. 21ECh. 9 - Prob. 22ECh. 9 - Prob. 1PSACh. 9 - Prob. 2PSACh. 9 - Prob. 3PSACh. 9 - Prob. 4PSACh. 9 - Prob. 5PSACh. 9 - Prob. 6PSACh. 9 - Prob. 1PSBCh. 9 - Prob. 2PSBCh. 9 - Prob. 3PSBCh. 9 - Prob. 4PSBCh. 9 - Prob. 5PSBCh. 9 - Prob. 6PSBCh. 9 - Prob. 9SPCh. 9 - Prob. 9CPCh. 9 - Prob. 1.1AACh. 9 - Prob. 1.2AACh. 9 - Prob. 2.1AACh. 9 - Prob. 2.2AACh. 9 - Prob. 2.3AACh. 9 - Prob. 3.1AACh. 9 - Prob. 3.2AACh. 9 - Prob. 3.3AACh. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - 3. What are the three important questions...Ch. 9 - 5. What is the combined amount (in percent) of the...Ch. 9 - 6. What is the current Medicare tax rate? This...Ch. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 10DQCh. 9 - 12. ᴬWhat is a wage bracket withholding table?
Ch. 9 - Prob. 12DQCh. 9 - Prob. 1BTNCh. 9 - Prob. 2BTNCh. 9 - Prob. 4BTNCh. 9 - Prob. 5BTN
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