Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
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Chapter 9, Problem 9.1E
Current Liabilities
The following items are accounts on Smith’s balance sheet of December 31, 2016:
Required
Identify which of the accounts should be classified as a current liability on Smith’s balance sheet. For each item that is not a current liability, indicate the category of the balance sheet in which it would be classified. Assume the company has the following balance sheet categories: current asset; property, plant, and equipment; long-term investment; intangible asset; current liability; long-term liability; and stockholders’ equity.
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(Current versus Noncurrent Classification) Rodriguez Corporation includes the following items in its liabilities at December 31, 2017.1. Notes payable, $25,000,000, due June 30, 2018.2. Deposits from customers on equipment ordered by them from Rodriguez, $6,250,000.3. Salaries and wages payable, $3,750,000, due January 14, 2018.InstructionsIndicate in what circumstances, if any, each of the three liabilities above would be excluded from current liabilities.
items appear on the balance sheet of a company with a one-year operating cycle. Identifythe proper classification of each item as follows: C if it is a current liability, L if it is a long-term liability,or N if it is not a liability. Current portion of long-term debt.
Q.Relax Company provided the following information for the purpose of presenting the statement of financial position on December 31, 2020:
Retained Earnings 87,600
Cash 32,800
Common stock 20,000
Inventory 39,800
Long-term liabilities 25,000
Leasehold Improvements 100,000
Accrued Expenses 1,000
Accumulated Depreciation (2,000)
Accounts Payable 49,000
Trademarks 20,000
Accumulated Amortization (8,000)
Required: Prepare in good form a properly classified statement of financial position on December 31,2020 with supporting notes and computations.
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Financial Accounting: The Impact on Decision Makers
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