Chapter 14
Long-Term Liabilities
Directed Reading Guide
LO1. How are long-term notes payable and mortgages payable accounted for?
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Accounts and Explanation |
Debit |
Credit |
LO2. What are bonds?
LO3. How are bonds payable accounted for using the straight-line amortization method?
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Accounts and Explanation |
Debit |
Credit |
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LO4. How is the retirement of bonds payable accounted for?
LO6. How do we use the debt to equity ratio to evaluate performance?
Chapter 14 Long-Term Liabilities Directed Reading Guide LO1. How are long-term notes payable and mortgages payable...
6) Journalize transactions for long-term notes payable, bonds payable and mortgages payable Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise. 2. Interest Exp. $6,600 On June 30, Porter Company issues 11%, five-year bonds payable with a face value of $120,000. The bonds are issued at face value and pay interest on June 30 and December 31. Requirements 1. Journalize the issuance of the bonds on June 30. 2. Journalize the semiannual interest payment on December...
rtgages payable 6) Journalize transactions for long-term notes payable, bonds payable and mortgages payab Assume bonds payable are amortized using the straight line amortization method unless stated otherwise. 2. Interest Exp. $6,600 On June 30, Porter Company issues 11% five-vear honds pavable with a face value of $120.000 bonds are issued at face value and pay interest on June 30 and December 31 Requirements 1. Journalize the issuance of the bonds on June 30. 2. Journalize the semiannual interest payment...
Balance Sheet Sept. 30, 2020 Current Liabilities: Current portion of LTD Interest Payable Long-term Liabilities: Bonds Payable Less Current Portion re to search Dallas Clothing Company issued $400,000 of 6% serial bonds on July 1, 2019, at face value. The bonds are dated July 1, 2019; they call for semiannual interest payments on July 1 and January 1; and they mature at the rate of $100,000 per year, with the first maturity date falling on July 1, 2020. The company's...
Accounts payable $454,000 Notes payable $246,000 Current liabilities $700,000 Long-term debt $1,136,000 Common equity $5,261,000 Total liabilities and equity $7,097,000 (Related to Checkpoint 4.2) (Capital structure analysis) The liabilities and owners' equity for Campbell Industries is found here: . a. What percentage of the firm's assets does the firm finance using debt (liabilities)? b. If Campbell were to purchase a new warehouse for $ 1.2 million and finance it entirely with long-term debt, what would be the firm's new debt...
Cash Equity Long-term debr Long-term investments Ner property and equipment Other assets Other long-term liabilities 1J0,000 120,000 100,000 150,000 40,000 10,000 4.5 Consider the following balance sheet: BestCare HMO Balance Sheet June 30, 2015 (in thousands) Assets Current Assets: Cash Net premiums receivable Supplies Total current assets Net property and equipment Total assets $2,737 821 387 $3,945 5,924 $9,869 Liabilities and Net Assets Accounts payable-medical services Accrued expenses $2,145 929 Notes payable Total current liabilities Long-term debt 382 Total liabilities...
HW10#10: BALANCE SHEET REPORTING OF LONG-TERM LIABILITIES: The adjusted trial balance for Helton Corporation at December 31, 2017 contained the following accounts: DEBITS CREDITS Current Assets Long-Term Assets Bonds payable, 10% Interest payable Discount on bonds payable Notes payable,9%, due 2021 Accounts payable $200,000 980,000 $500,000 20,000 30,000 70,000 120,000 Instructions (a) What is the total of all current liabilities? $ (b) What is the total of all long-term liabilities? $ (c) What is the total of all liabilities? $...
Balance Sheet Assets Liabilities Current Liabilities Current Assets 49 36 20 Accounts payable Notes payable/short term debt Total current liabilities ====== Cash Accounts receivable Inventories Total current assets 5 15 41 84 Long-Term Assets Long-Term Liabilities O A. - $1 million OB. $6 million OC. $43 million OD. - $6 million Long-Term Assets Long-Term Liabilities Net property, plant, and equipment Total long-term assets 126 126 Long-term debt Total long term abilities 135 135 Total liabilities Stockholders' Equity Total liabilities and...
Presented below are long-term liability items for Suarez Company at December 31, 2014. Prepare the long-term liabilities section of the balance sheet for Suarez Company. Bonds payable, due 2016 $500,000 Mortgage Liability due in one year $45,000 560,000 total Notes Payable, due 2019 80,000 Discount on Bonds Payable 42,000
Chapter 9 covers liabilities, including long-term notes and bonds. Notes and bonds are reported on the financials at their face amount less any unamortized discount (or plus any unamortized premium). Review the 10-K of Starbucks (including the debt footnote) and answer the following for the most recent year ended 2014: What is the face value of Starbucks long-term debt? What amount of long-debt is reported on the balance sheet? What does the difference between these two amounts tell you? Please...
Assets $ Liabilities $ Current Assets Current Liabilities Cash 12,000 Accounts payable 28,500 Cash at bank 7,000 Wages payable 7,000 Accounts receivable 35,000 Taxes payable 12,000 Inventory 30,500 Interest payable 15,000 Prepayments 3,300 Total current assets 87,800 Total current liabilities 62,500 Investments 25,000 Long-Term Liabilities Bank loan 335,000 Notes payable 15,000 Long-term liabilities 350,000 Property, Plant, and Equipment Total Liabilities 412,800 Land and building 156,000 Equipment 1,85,000 Less: Depreciation (63,000) 278,000 Stockholders’ Equity Intangible Assets Common stock 100,000 Goodwill 120,000...