FINANCIAL&MANAGERIAL ACCT.-CONNECT ONLY
9th Edition
ISBN: 9781266790539
Author: Wild
Publisher: MCG
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Question
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
The liabilities section of the year-end balance sheet, that reports the current portion of long-term debt.
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Students have asked these similar questions
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:
Total long term-debt
Current portion
December 31 December 31
Current Year Preceding Year
$669,200
(194,100)
$475,100
$368,100
(180,700)
$187,400
Long-term debt
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 (
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
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, matures. and pay off the debt as it
Note: Include the current method of processing and the excel formulas from start to finish!
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
Chapter 9 Solutions
FINANCIAL&MANAGERIAL ACCT.-CONNECT ONLY
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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Similar questions
- Saverin, Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin, Inc. issued 62,500,000 of 10-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of 66,747,178. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Instructions 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 2016, and the amortization of the bond premium, using the interest method. (Round to the nearest dollar.) b. The interest payment on June 30, 2017, and the amortization of the bond premium, using the interest method. (Round to the nearest dollar.) 3. Determine the total interest expense for 2016.arrow_forwardOn the first day of the current fiscal year, $200,000 of 10-year, 7% bonds, with interest payable annually, were sold for $212,500. What account would be listed in the description column (2) as the credit for the $200,000 in the journal entry to record this transaction?arrow_forwardOn the first day of the fiscal year, Shiller Company borrowed $32,000 by giving a 5-year, 11% installment note to Soros Bank. The note requires annual payments of $8,783, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $3,520 and principal repayment of $5,263. Journalize the entries to record the following: Question Content Area a1. Issued the installment note for cash on the first day of the fiscal year. If an amount box does not require an entry, leave it blank. blank Account Debit Credit blank Question Content Area a2. Paid the first annual payment on the note. If an amount box does not require an entry, leave it blank. blank Account Debit Credit blankarrow_forward
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