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roblem 1- Able Compan

roblem 1- Able Compan

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 1-10 (AICPA Adapted) Able Company had the following amounts of long-term debt outstanding on December 31, 2020: 14% note payable, due 2021 11% note payable, due 2023 8% note payable, due in 11 equal annual principal payments, plus interest beginning December 31, 2021 7% guaranteed debentures, due 2022 30,000 1,070,000 1,100,000 1,000,000 Total 3,200,000 The annual sinking fund requirement on the guaranteed debentures is P40,000 per year. What total amount should be reported as current liabilities on December 31, 2020? a. 40,000 b. 70,000 100,000 d. с. 130,000 Problem 1-11 (AICPA Adapted) Achilles Company reported the following liability balances on December 31, 2020: 12% note payable issued on March 1, 2019, maturing on March 1, 2021 10% note payable issued on October 1, 2019, maturing October 1, 2021 5,000,000 3,000,000 The 2020 financial statements were issued on March 31, 2021. On January 31, 2021, the entire P5,000,000 balance of the 12% note payable was refinanced through issuance of a long-term obligation payable lump sum. Under the loan agreement for the 10% note payable, the entity has the discretion to refinance the obligation for at least twelve months after December 31, 2020. What amount of the notes payable should be classified as current on December 31, 2020? 8,000,000 5,000,000 3,000,000 0. a. b. с. d.
Transcribed Image Text:Problem 1-10 (AICPA Adapted) Able Company had the following amounts of long-term debt outstanding on December 31, 2020: 14% note payable, due 2021 11% note payable, due 2023 8% note payable, due in 11 equal annual principal payments, plus interest beginning December 31, 2021 7% guaranteed debentures, due 2022 30,000 1,070,000 1,100,000 1,000,000 Total 3,200,000 The annual sinking fund requirement on the guaranteed debentures is P40,000 per year. What total amount should be reported as current liabilities on December 31, 2020? a. 40,000 b. 70,000 100,000 d. с. 130,000 Problem 1-11 (AICPA Adapted) Achilles Company reported the following liability balances on December 31, 2020: 12% note payable issued on March 1, 2019, maturing on March 1, 2021 10% note payable issued on October 1, 2019, maturing October 1, 2021 5,000,000 3,000,000 The 2020 financial statements were issued on March 31, 2021. On January 31, 2021, the entire P5,000,000 balance of the 12% note payable was refinanced through issuance of a long-term obligation payable lump sum. Under the loan agreement for the 10% note payable, the entity has the discretion to refinance the obligation for at least twelve months after December 31, 2020. What amount of the notes payable should be classified as current on December 31, 2020? 8,000,000 5,000,000 3,000,000 0. a. b. с. d.
Burma Company disclosed the following information about 4,000,000 1,500,000 500,000 1,000,000 Pro Problem 1-8 (IAA) Able outs Accounts payable, after deducting debit balances in suppliers' accounts amounting to P100,000 Accrued expenses Credit balances of customers' accounts Share dividend payable Claims for increase in wages and allowance by employees of the entity, covered in a pending lawsuit Estimated expenses in redeeming prize coupons presented by customers liabilities at year-end: 14% 11% 8% r 7% g 400,000 Tota 600,000 The debe What total amount should be presented as current liabilities at year-end? Wha on I a. 6,700,000 b. 6,600,000 c. 7,100,000 d. 7,700,000 a. b. с. d. Problem 1-9 (AICPA Adapted) Pro Gar Company disclosed the following liability account balances on December 31, 2020: Achi Dece 12% r Accounts payable Bonds payable Premium on bonds payable Deferred tax liability Dividends payable Income tax payable Note payable, due January 31, 2021 10% 1,900,000 3,400,000 200,000 400,000 500,000 900,000 600,000 The 2 On Ja note obliga On December 31, 2020, what total amount should be reported Under has th montl as current liabilities? a. 7,100,000 b. 4,300,000 c. 3,900,000 d. 4,100,000 What curre a. b. с. d.
Transcribed Image Text:Burma Company disclosed the following information about 4,000,000 1,500,000 500,000 1,000,000 Pro Problem 1-8 (IAA) Able outs Accounts payable, after deducting debit balances in suppliers' accounts amounting to P100,000 Accrued expenses Credit balances of customers' accounts Share dividend payable Claims for increase in wages and allowance by employees of the entity, covered in a pending lawsuit Estimated expenses in redeeming prize coupons presented by customers liabilities at year-end: 14% 11% 8% r 7% g 400,000 Tota 600,000 The debe What total amount should be presented as current liabilities at year-end? Wha on I a. 6,700,000 b. 6,600,000 c. 7,100,000 d. 7,700,000 a. b. с. d. Problem 1-9 (AICPA Adapted) Pro Gar Company disclosed the following liability account balances on December 31, 2020: Achi Dece 12% r Accounts payable Bonds payable Premium on bonds payable Deferred tax liability Dividends payable Income tax payable Note payable, due January 31, 2021 10% 1,900,000 3,400,000 200,000 400,000 500,000 900,000 600,000 The 2 On Ja note obliga On December 31, 2020, what total amount should be reported Under has th montl as current liabilities? a. 7,100,000 b. 4,300,000 c. 3,900,000 d. 4,100,000 What curre a. b. с. d.
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