E5.8 (LO1, 2) (Current vs. Non-Current Liabilities) Pascal Corporation is preparing its December 31, 2019, statement...
Current Attempt in Progress Sarasota Corporation is preparing its December 31, 2020, balance sheet. The following items may be reported as either a current or long-term liability. 1. On December 15, 2020, Sarasota declared a cash dividend of $2.30 per share to stockholders of record on December 31. The dividend is payable on January 15, 2021. Sarasota has issued 1,000,000 shares of common stock, of which 50,000 shares are held in treasury. 2. At December 31, bonds payable of $114,286,000...
Wildhorse Corporation is preparing its December 31, 2020, balance sheet. The following items may be reported as either a current or long-term liability. 1. On December 15, 2020, Wildhorse declared a cash dividend of $2.50 per share to stockholders of record on December 31. The dividend is payable on January 15, 2021. Wildhorse has issued 1,000,000 shares of common stock, of which 50,000 shares are held in treasury. 2. At December 31, bonds payable of $106,443,000 are outstanding. The bonds...
Question 2 of 4 < > -76 = Current Attempt in Progress Splish Corporation is preparing its December 31, 2020, balance sheet. The following items may be reported as either a current or long-term liability 1. 2. On December 15, 2020, Splish declared a cash dividend of $2.20 per share to stockholders of record on December 31. The dividend is payable on January 15, 2021. Splish has issued 1,000,000 shares of common stock, of which 50,000 shares are held in...
E5.10 (LO1, 2) (Current Liabilities) Mary Pierce is the controller of Arnold Corporation and is responsible for the preparation of the year-end financial statements. The following transactions occurred during the year. a. Bonuses to key employees based on net income for 2019 are estimated to be $150,000 b. On December 1, 2019, the company borrowed $900,000 at 8% per year. Interest is paid quarterly. c. Credit sales for the year amounted to $10,000,000. Arnold's expense provision for doubtful accounts is...
Cone Corporation is in the process of preparing its December 31, 2018, balance sheet. There are some questions as to the proper classification of the following items: $66,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2022. Prepaid rent of $40,000, covering the period January 1, 2019, through December 31, 2020. Note payable of $232,000. The note is payable in annual installments of $36,000 each, with the first installment payable on March 1,...
Cone Corporation is in the process of preparing its December 31, 2018, balance sheet. There are some questions as to the proper classification of the following items: a. $55,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2022. b. Prepaid rent of $29,000, covering the period January 1, 2019, through December 31, 2020. c. Note payable of $210,000. The note is payable in annual installments of $25,000 each, with the first installment payable...
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The balance sheet at December 31, 2018, for Nevada Harvester Corporation includes the liabilities listed below: a. 8% bonds with a face amount of $50 million were issued for $50 million on October 31, 2009. The bonds mature on October 31, 2029. Bondholders have the option of calling (demanding payment on) the bonds on October 31, 2019, at a redemption price of $50 million. Market conditions are such that the call is not expected to be exercised. b. Management...
The balance sheet at December 31, 2018, for Nevada Harvester Corporation includes the liabilities listed below: 8% bonds with a face amount of $50 million were issued for $50 million on October 31, 2009. The bonds mature on October 31, 2029. Bondholders have the option of calling (demanding payment on) the bonds on October 31, 2019, at a redemption price of $50 million. Market conditions are such that the call is not expected to be exercised. Management intended to refinance...
1. Do you AGREE or DISAGREE with the following statement? Under Current (2019) US GAAP, if on December 31, 2019, a firm with outstanding “Commercial Paper” in the amount of $ 5,000,000, which is due on June 30, 2020, may classify the “Commercial Paper” as a Non-Current Liability if the firm has an unused line of credit with an expiration date of May 31, 2021 in the amount of $ 12,000,000. BRIEFLY support your answer. 2. Do you AGREE or...
Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. There are some questions as to the proper classification of the following items: a. $51,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2025. b. Prepaid rent of $25,000, covering the period January 1, 2022, through December 31, 2023. c. Notes payable of $202,000. The notes are payable in annual installments of $21,000 each with the first installment payable...