Question: Examine the following items and prepare the current liabilities section of the Balance sheet for Annapolis? Corporation as of December 31, 2015. 1. The beginning of year accounts payable was $82,000. Purchases on trade accounts during the year were $452,000, and payments on account were $415,000. 2. the company incurs substantial costs in its manufacturing plant. As of December 31, 2015, it is estimated that $38,000 of electricity has been used. The monthly billing for December has not yet been received. 3. Annapolis Corporation has accepted deposits from customers in advance for a product that will not ship until 2-16 in the amount of $174,500. 4. Annapolis Corporation has collected sales tax totaling $6,800 from customers during the month of December 2105. This tax must be remitted to the state by January 10, 2016. 5. Annapolis Corporation has $2,000,000 outstanding on a bank loan. The interest rate is 7.5% per annum and the interest is paid monthly on the first day of each month for the prior month. 6. The loan listed above has principle repayment obligations equally spread over eight years beginning in 2016.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Provide answer with calculation

Question:
Examine the following items and prepare the current liabilities section of the Balance sheet for
Annapolis? Corporation as of December 31, 2015.
1. The beginning of year accounts payable was $82,000. Purchases on trade accounts during
the year were $452,000, and payments on account were $415,000.
2. the company incurs substantial costs in its manufacturing plant. As of December 31, 2015,
it is estimated that $38,000 of electricity has been used. The monthly billing for December
has not yet been received.
3. Annapolis Corporation has accepted deposits from customers in advance for a product that
will not ship until 2-16 in the amount of $174,500.
4. Annapolis Corporation has collected sales tax totaling $6,800 from customers during the
month of December 2105. This tax must be remitted to the state by January 10, 2016.
5. Annapolis Corporation has $2,000,000 outstanding on a bank loan. The interest rate is
7.5% per annum and the interest is paid monthly on the first day of each month for the prior
month.
6. The loan listed above has principle repayment obligations equally spread over eight years
beginning in 2016.
Transcribed Image Text:Question: Examine the following items and prepare the current liabilities section of the Balance sheet for Annapolis? Corporation as of December 31, 2015. 1. The beginning of year accounts payable was $82,000. Purchases on trade accounts during the year were $452,000, and payments on account were $415,000. 2. the company incurs substantial costs in its manufacturing plant. As of December 31, 2015, it is estimated that $38,000 of electricity has been used. The monthly billing for December has not yet been received. 3. Annapolis Corporation has accepted deposits from customers in advance for a product that will not ship until 2-16 in the amount of $174,500. 4. Annapolis Corporation has collected sales tax totaling $6,800 from customers during the month of December 2105. This tax must be remitted to the state by January 10, 2016. 5. Annapolis Corporation has $2,000,000 outstanding on a bank loan. The interest rate is 7.5% per annum and the interest is paid monthly on the first day of each month for the prior month. 6. The loan listed above has principle repayment obligations equally spread over eight years beginning in 2016.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education