d. Current Liability of $875

AmountFinanced Number ofPayments MonthlyPayment FinanceCharge APR $18,300 72 $426.08 $   %

5. Which of the following is a characteristic of a current liability? OA current liability must be of a known amount. OA current liability is due within one year or one operating cycle, whichever is longer. A current liability must be of an estimated amount. Current liabilities are subtracted from long-term liabilities on the balance sheet.

$100,000 x 4.79079* = Lease Payments $479,079 Right-of-Use Asset *Present value of an annuity due of $1: n = 6,i = 10%

Current liabilities are a.payable if a possible subsequent event occurs b.due, but not payable for more than one year c.due and receivable within one year d.due and to be paid out of current assets within one year

Find A and B Principal $8,425 Interst rate: 8.2% Time 60 days Simple Interest: A Total Amount owed: B

6. On August 1, 2012, Gabriel Company leased a machine to Baby Company for a six-year period requiring payments of P100,000 at the beginning of each year. The machine cost P480,000, which is the fair value at the lease date, and has a useful life of eight years with no residual value. Gabriel's implicit interest rate is 10% and present value factors are rounded off to three decimal places. Gabriel appropriately recorded the lease as a direct financing lease. /

A long term note ($400,000 face value) matured. The interest of $40,000 was paid but the principle was not. Here is question 2.  Expenditures—Debt Service—Principal.................................................                                     Expenditures—Debt Service—Interest.......................................                                            Cash................................................................................                                                                        Defaulted Note Payable

None