GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
17th Edition
ISBN: 9781260218831
Author: Libby
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 9.8P
To determine
Describe whether the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
An annual report of Sprint Corporation contained a rather lengthy narrative entitled “Review of Segmental Results of Operation.” The narrative noted that short-term notes payable and commercial paper outstanding at the end of the year aggregated $756 million and that during the following year “This entire balance will be replaced by the issuance of long-term debt or will continue to be refinanced under existing long-term credit facilities.” Required: How did Sprint report the debt in its balance sheet? Why?
In the past year, Blossom Corporation reported assets of $230229000. Liabilities reported on the balance sheet on the same date
were reported at $69091655. Blossom issued a new note payable for cash during the year. The 8%, 5-year note was issued at a face
value of $5008000. What is the company's debt to asset ratio after the refinance?
O 29.37%
31.50%
32.18%
O 30.01%
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
Previous Year
Current Year
Total long term-debt
Less current portion
$33,284
$28,897
(4,071)
(5,076)
$29,213
$23,821
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?
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. If 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?
Chapter 9 Solutions
GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
Ch. 9 - Prob. 1QCh. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - Prob. 4QCh. 9 - Prob. 5QCh. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Define deferred revenue. Why is it a liability?Ch. 9 - Prob. 9QCh. 9 - Define working capital. How is working capital...
Ch. 9 - Prob. 11QCh. 9 - When a company signs a capital lease, does it...Ch. 9 - Prob. 13QCh. 9 - Define annuity.Ch. 9 - Prob. 15QCh. 9 - Prob. 16QCh. 9 - What is the present value factor for an annuity of...Ch. 9 - The university golf team needs to buy a car to...Ch. 9 - Which of the following best describes accrued...Ch. 9 - Prob. 4MCQCh. 9 - A company is facing a lawsuit from a customer. It...Ch. 9 - Which of the following transactions would usually...Ch. 9 - How is working capital calculated? a. Current...Ch. 9 - Prob. 8MCQCh. 9 - SmallFish Company borrowed 100,000 at 8% interest...Ch. 9 - Prob. 10MCQCh. 9 - Prob. 9.1MECh. 9 - Computing and Interpreting Accounts Payable...Ch. 9 - Prob. 9.3MECh. 9 - Prob. 9.4MECh. 9 - Prob. 9.5MECh. 9 - Prob. 9.6MECh. 9 - Prob. 9.7MECh. 9 - Prob. 9.8MECh. 9 - Prob. 9.9MECh. 9 - Computing the Present Value of an Annuity What is...Ch. 9 - Prob. 9.11MECh. 9 - Prob. 9.12MECh. 9 - Prob. 9.1ECh. 9 - Recording Payroll Costs Paul Company completed the...Ch. 9 - Prob. 9.3ECh. 9 - Recording a Note Payable through Its Time to...Ch. 9 - Prob. 9.5ECh. 9 - Prob. 9.6ECh. 9 - Prob. 9.7ECh. 9 - Prob. 9.8ECh. 9 - Reporting Contingent Liabilities Jones Soda is a...Ch. 9 - Prob. 9.10ECh. 9 - Prob. 9.11ECh. 9 - Prob. 9.12ECh. 9 - Computing Four Present Value Problems On January 1...Ch. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17ECh. 9 - Prob. 9.18ECh. 9 - Prob. 9.19ECh. 9 - Prob. 9.20ECh. 9 - Prob. 9.21ECh. 9 - Prob. 9.22ECh. 9 - Prob. 9.23ECh. 9 - Prob. 9.24ECh. 9 - Recording and Reporting Current Liabilities LO9-1...Ch. 9 - Prob. 9.2PCh. 9 - Prob. 9.3PCh. 9 - Recording and Reporting Accrued Liabilities and...Ch. 9 - Prob. 9.5PCh. 9 - Prob. 9.6PCh. 9 - Prob. 9.7PCh. 9 - Prob. 9.8PCh. 9 - Prob. 9.9PCh. 9 - Prob. 9.10PCh. 9 - Prob. 9.11PCh. 9 - Prob. 9.12PCh. 9 - Prob. 9.13PCh. 9 - Prob. 9.14PCh. 9 - ALTERNATE PROBLEMS AP9-1 Recording and Reporting...Ch. 9 - Prob. 9.2APCh. 9 - Prob. 9.3APCh. 9 - Prob. 9.4APCh. 9 - Prob. 9.5APCh. 9 - Prob. 9.6APCh. 9 - Prob. 9.7APCh. 9 - Prob. 9.8APCh. 9 - Prob. 9.1CONCh. 9 - Annual Report Cases Finding Financial Information...Ch. 9 - Finding Financial Information Refer to the...Ch. 9 - Prob. 9.3CPCh. 9 - Prob. 9.4CPCh. 9 - Prob. 9.5CP
Knowledge Booster
Similar questions
- Rothschild Chair Company, Incorporated, was indebted to First Lincoln Bank under a $40 million, 10% unsecured note. The note was signed January 1, 2014, and was due December 31, 2027. Annual interest was last paid on December 31, 2022. At January 1, 2024, Rothschild Chair Company was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement. Note: Use appropriate factor(s) from the tables provided. (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $.1) Required: Prepare all journal entries by First Lincoln Bank to record the restructuring and any remaining transactions, for current and future years, relating to the debt under each of the independent circumstances below: 1. First Lincoln Bank agreed to settle the debt in exchange for land having a fair value of $36 million but carried on Rothschild Chair Company's books at $33 million. 2. First Lincoln Bank agreed to (a) forgive the interest accrued from last year, (b)…arrow_forwardRothschild Chair Company, Incorporated, was indebted to First Lincoln Bank under a $20 million, 10% unsecured note. The note was signed January 1, 2014, and was due December 31, 2027. Annual interest was last paid on December 31, 2022. At January 1, 2024, Rothschild Chair Company was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement. Note: Use appropriate factor(s) from the tables provided. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: Prepare all journal entries by First Lincoln Bank to record the restructuring and any remaining transactions, for current and future years, relating to the debt under each of the independent circumstances below: 1. First Lincoln Bank agreed to settle the debt in exchange for land having a fair value of $16 million but carried on Rothschild Chair Company's books at $13 million. 2. First Lincoln Bank agreed to (a) forgive the interest accrued from last year, (b)…arrow_forwardRothschild Chair Company, Incorporated, was indebted to First Lincoln Bank under a $40 million, 10% unsecured note. The note was signed January 1, 2014, and was due December 31, 2027. Annual interest was last paid on December 31, 2022. At January 1, 2024. Rothschild Chair Company was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement Note: Use appropriate factor(s) from the tables provided. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Required: Prepare all journal entries by First Lincoln Bank to record the restructuring and any remaining transactions, for current and future years, relating to the debt under each of the independent circumstances below: 1. First Lincoln Bank agreed to settle the debt in exchange for land having a fair value of $36 million but carried on Rothschild Chair Company's books at $33 million. 2. First Lincoln Bank agreed to (a) forgive the interest accrued from last year, (b)…arrow_forward
- DuPont reports in a recent balance sheet $598 million of 5.25 percent notes payable due in 2016.The company’s income tax rate is approximately 19 percent.a. Compute the company’s after-tax cost of borrowing on this bond issue stated as a total dollaramount.b. Compute the company’s after-tax cost of borrowing on this bond issue stated as a percentageof the amount borrowed.c. Describe briefly the advantage of raising funds by issuing bonds as opposed to stocks.arrow_forwardPepsiCo, 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 Current Year Preceding Year Total long term-debt $33,284 $28,897 Less current portion (4,071) (5,076) Long-term debt $29,213 $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. If 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?arrow_forward20. Down Company has an overdue Notes Payable to City Bank of P8,000,000 and recorded accrued interest of P640,000, based on 8% interest rate. This rate of interest is presumed to be the market rate at the time of debt restructuring. As a result of a settlement on December 31, 2012, City Bank agreed to the restructuring arrangement as presented in the image. What is Down Company's gain on debt restructuring? Round off present value factors to four decimal places. * Reduced the principal obligation to P6,000,000. Forgave the P640,000 accrued interest. Extended the maturity date to December 31, 2014. Annual interest of 10% is to be paid on December 31, 2013 and 2014. a. P2,640,000 b. P2,426,220 c. P1,440,000 O d. POarrow_forward
- (Entries for Zero-Interest-Bearing Debt) On January 1, 2014, Fisher Company makes the two following acquisitions. 1. Purchases land having a fair market value of $800,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $1,175,464. 2. Purchases equipment by issuing a 4%, 8-year promissory note having a maturity value of $350,000 (interest payable annually). The company has to pay 8% interest for funds from its bank. Instructions: A) Record the two journal entries that should be recorded by Fisher Company for the two purchases on January 1, 2014 B) Record the interest at the end of the first two years on both notes using the effective-interest method.arrow_forwardDeere & Company’s 2018 10-K reports the following footnote relating to long-term debt for its equipment operations subsidiary. Deere’s borrowings include $300 million, 7.125% notes, due in 2031arrow_forwardIn its year end financial statements, Big Bank Corporation reports marketable debt securities of $416,099 million. The footnotes disclose that these securities have an amortized cost of $418,961 million. Which of the following is true? Select one: a. There are net unrealized losses of $2,862 million on these securities. b. These are trading securities. c. These are available-for-sale securities. d. Both A and C e. Both B and Carrow_forward
- Each year, Pacific Enterprises (PE) prepares a reconciliation schedule that compares its income statement with its statement of cash flows . In its 2018 income statement, PE reported $11,000 of interest expense on its outstanding bonds. During the year, PE paid its regular installments of $9,000 of interest in cash. In its reconciliation schedule, PE should: Show a $2,000 positive adjustment to net income under the indirect method for the decrease in bond discount Show a $2,000 positive adjustment to net income under the indirect method for the decrease in bond premium Show a $2,000 negative adjustment to net income under the indirect method for the decrease in bond discount Show a $2,000 negative adjustment to net income under the indirect method for the decrease in bond premiumarrow_forwardThe controllers of Kingbird, Inc. and Pina Corp. both ask you whether their companies can reclassify short-term obligations as long-term. Here are the facts surrounding both companies’ short-term debt.Kingbird, Inc. On December 31, 2017, Kingbird, Inc. has $1,920,000 of short-term debt in the form of notes payable to Michaels State Bank due February 5, 2018. On January 28, 2018, Kingbird issued 19,200 shares of common stock at $75 per share. Kingbird used the proceeds of $1,440,000 from the stock issuance, along with $624,000 in cash to retire the short-term debt and associated accrued interest on February 5, 2018. Kingbird will issue its December 31, 2017 financial statements on February 25, 2018.Pina Corp. On December 31, 2017, Pina Corp. has $2,880,000 of short-term notes payable to Indiana Bank & Trust. The notes are due on January 31, 2018. Pina retired the notes, along with $192,000 in accrued interest, in full on January 31, 2018. On February 11, 2018, Pina obtained…arrow_forwardFacts for Questions 40-41 Tweety, Inc. plans to be acquired by another company. Tweety, Inc.'s incomae stalement reflects the following: Net income Extraordinary Loss on Sale of a Division Depreciation and Amortization Expense Planned Capital Expenditures Decrease in Necessary Working Capital Debt Payments Interest Expense, net Non-Recurring Gain 971,237 185,371 62,c86 37,534 15,732 34,049 21,362 10,742 There are currently two proposals being considered by Tweety, Inc. Proposal 1: the acquiring company wil purchase all of Twoety, Inc.'s common stock outstanding in an all-cash deal. The purchase price will refect the entorprise value of the company (tactoring in its debi). Proposal 2: the acquiring company wil purchase all of Tweoty. Inc's common stock outstanding in an all-cash deal. The purchase price will refect the value of the company on a debl-free basis. Question 40 After factoring in Tweety, Inc.'s debt, what amount of cash is available for distribution lo the common…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education