Bon Nebo Co. sold 12,000 annual subscriptions of Bjorn for $44 during December 2015. These new subscribers will receive monthly issues, beginning in January 2016. In addition, the business had taxable income of $332,000 during the first calendar quarter of 2016. The federal tax rate is 38 %. A quarterly tax payment will be made on April 12, 2016. Prepare the "Current liabilities" section of the balance sheet for Bon Nebo Co. on March 31, 20Y6. Bon Nebo Co. Current Liabilities Section of Balance Sheet March 31, 2016 Line Item Description Current liabilities: Advances on magazine subscriptions Federal income taxes payable Total current liabilities Amount

Bon Nebo Co. sold 12,000 annual subscriptions of Bjorn for $44 during December 2015. These new subscribers will receive monthly issues, beginning in January 2016. In addition, the business had taxable income of $332,000 during the first calendar quarter of 2016. The federal tax rate is 38 %. A quarterly tax payment will be made on April 12, 2016. Prepare the "Current liabilities" section of the balance sheet for Bon Nebo Co. on March 31, 20Y6. Bon Nebo Co. Current Liabilities Section of Balance Sheet March 31, 2016 Line Item Description Current liabilities: Advances on magazine subscriptions Federal income taxes payable Total current liabilities Amount

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

See similar textbooks

Similar questions

Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability Income tax expense Mortgage payable, 5% View transaction list Additional information: a. $11,800 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $136,040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $150,000 given similar cases in the industry. c. During December, Mackenzie had sales of $720,000. 5% of sales typically require warranty work equal to 25% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $112,500 of the Unearned Revenues remain unearned at December 31, 2023. f. The 120-day note payable was dated November 15, 2023. No 1 $ 6,560…
On June 1, 2016, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000. Assuming that Donna Equipment maintains its books on a calendar year basis, how much interest expense should be reported in the 2017 income statement?
The Company issued a short-term debt of $65,000 on July 1, 2021 for a period of 5 months with a note payable of 14% interest. The company uses the accounting period on a quarterly basis. Required: Prepare the journal entries needed to record the issuance of the debt, recognize interest expense, matures. and pay off the debt as it Note: Include the current method of processing and the excel formulas from start to finish!
Current Liabilities Bon Nebo Co. sold 11,500 annual subscriptions of Bjorn for $57 during December 2015. These new subscribers will receive monthly issues, beginning in January 20Y6. In addition, the business had taxable income of $412,000 during the first calendar quarter of 2016. The federal tax rate is 35%. A quarterly tax payment will be made on April 12, 2016. Prepare the "Current liabilities" section of the balance sheet for Bon Nebo Co. on March 31, 2016. Bon Nebo Co. Current Liabilities Section of Balance Sheet March 31, 20Y6 Current liabilities: Advances on magazine subscriptions Federal income taxes payable Total current liabilities
Current liabilities Bon Nebo Co. sold 11,500 annual subscriptions of Bjorn for $53 during December 20Y5. These new subscribers will receive monthly issues, beginning in January 20Y6. In addition, the business had taxable income of $384,000 during the first calendar quarter of 2016. The federal tax rate is 38%. A quarterly tax payment will be made on April 12, 2016. Prepare the "Current liabilities" section of the balance sheet for Bon Nebo Co. on March 31, 20Y6. Bon Nebo Co. Current Liabilities Section of Balance Sheet March 31, 2016 Line Item Description Current liabilities: Advances on magazine subscriptions $ Federal income taxes payable Total current liabilities Amount
On the first day of each month, Bell Company received from Kaye Company an escrow deposit of P375,000 for real estate taxes. The entity recorded the P375,000 in an escrow account. Kaye's 2020 real estate tax is P4,200,000, payable in equal instalments on the first day of each calendar quarter. On January 1, 2020, the balance in the escrow account was P450,000. On September 30, 2020, what amount should be reported as an escrow liability?
On August 1, 2021, Stucko Company borrowed $21,000 on an 8-month, 3%, short-term note payable. Which account will be credited on April 1, 2022, and for what amount? Stucko Company has a calendar year-end.
Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability Income tax expense Mortgage payable, 6% $ 6,590 133,100 480,000 120-day note payable, 5% Unearned revenues Warranty expense $ 93,000 309,000 7,700 Additional information: a. $12,100 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $139,040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $153,000 given similar cases in the industry. c. During December, Mackenzie had sales of $723,000. 6% of sales typically require warranty work equal to 15% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $112,800 of the Unearned Revenues remain unearned at…
Purdum Farms borrowed $10 million by signing a five-year note on December 31, 2015. Repayments of the principal are payable annually in installments of $2 million each. Purdum Farms makes the first payment on December 31, 2016 and then prepares its balance sheet. What amount will be reported as current and long-term liabilities, respectively, in connection with the note at December 31, 2016, after the first payment is made? Zero in current liabilities and $10 million in long-term liabilities. $2 million in current liabilities and $6 million in long-term liabilities. $2 million in current liabilities and $8 million in long-term liabilities. Zero in current liabilities and $8 million in long-term liabilities.
DALLAS Corp. is preparing the December 31, 2020, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability $ 6,490 120-day note payable, 3% $ 83,000 Income tax expense 122,100 Unearned revenues 299,000 Mortgage payable, 4% 450,000 Warranty expense 6,700 Additional information: a. $11,100 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $129,040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $143,000 given similar cases in the industry. c. During December, DALLAS had sales of $713,000. 4% of sales typically require warranty work equal to 20% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $111,800 of the Unearned Revenues remain unearned at December…