Shoppi Company had the following amounts of long-term debt outstanding on December 31, 2019: 14% term note, due 2020. 30,000 11% term note, due 2022. 1,070,000 8% note, due in 11 equal annual principal payments. 1,100,000 Plus interest beginning Dec. 31,2020 7% guaranteed debentures, due 2021. 1,000,000 Total. 3,200,000 The annual sinking fund requirement on the guaranteed debentures is 40,000 per year. What total amount should be reported as current liabilities on December 31, 2019?
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- Able Company had the following amounts of long-term, debt outstanding at December 31, 2021: 14% term note, due 2022 30,000 11% term note, due 2009 1,070,000 8% note, due in 11 equal annual principal payments, plus interest beginning December 31, 2022 1,100,000 7% guaranteed debentures, due 2010 1,000,000 Total 3,200,000 Able’s annual sinking fund requirement on the guaranteed debentures is P40,000 per year. What amount should Able report as current maturities of long-term debt in its December 31, 2021 balance sheet?At December 31 2025, Crane co has outstanding 3 long term debt issues. The first is a 6,150,000 note payable which matures June 30, 2028. Second is a 20, 250,000 bond issue which matures september 30, 2029. Third is a 57,410,000 sinking fund debenture with annual sinking fund payments of 11,482,000 in each of the years 2027 through 2031. Prepare the note disclosure for the long term debt at December 31, 2025, 2026, 2027, 2028, 2029, and 2030. Also prepare the journal entry for the purchase on 12/31/25.At December 31, 2025, Marin Company has outstanding three long-term debt issues. The first is a $1,960,000 note payable which matures June 30, 2028. The second is a $6,760,000 bond issue which matures September 30, 2029. The third is a $13,530,000 sinking fund debenture with annual sinking fund payments of $2,706,000 in each of the years 2027 through 2031. Prepare the required note disclosure for the long-term debt at December 31, 2025. (Do not leave any answer field blank. Enter O for amounts.) 2026 $ 2027 $ 2028 $ 2029 $ 2030 $ Long-term Debt
- Amasan Corp. reported the following liabilities on December 31,2020 Accounts Payable 750,000 Short-terms borrowings 400,000 Bonds Payable due 2021 3,000,000 Premium on bonds payable 200,000 Mortgage payable, current portion 500,000 3,500,000 Bank loan, due June 30,2021 1,000,000 The 1,000,000 bank loan was refinanced with a 5-year loan on January 15,2021. The financial statements were issued March 1, 2021. What amount should be reported as current liabilities on December 21,2020? a.2,650,000 c.5,350,000 b.5,850,000 d. 4,850,000At December 31, 2020, Redmond Company has outstanding three long-term debt issues. The first is a $2,000,000 note payable which matures June 30, 2023. The second is a $6,000,000 bond issue which matures September 30, 2024. The third is a $12,500,000 sinking fund debenture with annual sinking fund payments of $2,500,000 in each of the years 2022 through 2026. Instructions Prepare the required note disclosure for the long-term debt at December 31, 2020.At December 31, 2020, Marigold Company has outstanding three long-term debt issues. The first is a $2,210,000 note payable which matures June 30, 2023. The second is a $5,360,000 bond issue which matures September 30, 2024. The third is a $12,640,000 sinking fund debenture with annual sinking fund payments of $2,528,000 in each of the years 2022 through 2026.Prepare the required note disclosure for the long-term debt at December 31, 2020. Long Term Debt 2021 2022 2023 2024 2025
- On January 1, 2020, Patrick Corporation issued P10 million bonds that will mature in five years. The bond indenture requires Patrick to establish a sinking fund for the retirement of these bonds, with semi-annual deposit every June 30 and December 31, starting June 30, 2020 up to December 31, 2024 in time for the maturity of the bonds.The fund is to be placed in a separate account to be maintained in the company's depository bank. Using an average annual interest rate of 10% (net of tax) expected to be earned on this investment, the company determined that the required semi-annual deposit to be able to accumulate a total of P10 million is P795,045.27.How much is the bond sinking fund balance at December 31, 2020 after making the required semi-annual deposits in the fund? A. P 795,045.27 B. P 834,797.53 C. P1,669,595.00 D. PI,629,842.80The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project, LHD issued 5% bonds with a face amount of $500,000 on November 1, 2021. The bonds sold for $442,215, a price to yield the market rate of 6%. The bonds mature October 31, 2041 (20 years). Interest is paid semiannually on April 30 and October 31.Required:1. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2021?2. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2021?3. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2022?4. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2022?On January 1, 2020 Patrice Company issued P10 million bonds that will mature in five years. The bond indenture requires Patrick to establish a sinking fund for the retirement of these bonds, with annual deposit every January 1, starting January 1, 2020 up to January 1, 2020 in time for the maturity of the bonds.The fund is to be placed in a separate account to be maintained in the company's depository bank. Using an average annual interest rate of 10% (net of tax) expected to be earned on this investment, the company determined that the required annual deposit to be able to accumulate a total of P10 million is P1,489,070.20. How much is the bond sinking fund balance at December 31, 2020 after making therequired year-end adjustment in the fund? A. P1,489,070.20 B. P1,637,977.22 C. P1,629,842.80 D. P3,127,047.42
- On December 31, 2020, Whitfield Corp. issued $ 400,000 10% bonds, due on December 31, 2025. Interest is to be paid semi-annually on June 30 and December 31. The bonds were sold at a market value of $432,444 to yield 8% effective annual interest. Whitfield has a calendar year-end.Required:1. Complete the following amortization schedule for the dates indicated. Show to the second decimal place (dollars and cents). Use the effective-interest method.A company issues $25,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are $24,505,180. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2020 balance sheet? a. $24,515,802 b. $24,510,385 c. $25,000,000 d. $24,531,405The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its MoonlightBay project, LHD issued 5% bonds with a face amount of $500,000 on November 1, 2018. The bonds sold for$442,215, a price to yield the market rate of 6%. The bonds mature October 31, 2038 (20 years). Interest is paidsemiannually on April 30 and October 31.Required:1. What amount of interest expense related to the bonds will LHD report in its income statement for the yearending December 31, 2018?2. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2018?3. What amount of interest expense related to the bonds will LHD report in its income statement for the yearending December 31, 2019?4. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2019?