Current portion of long-term debtConnie's Bistro, Inc. reported the following information about its long-term debt in the notes to a recent financial statement (in millions):Long-term debt consists of the following:December 31 December 31Current Year Preceding YearTotal long term-debt$784,700$431,600Current portion(227,600)(211,900)Long-term debt$557,100$219,700a. How much of the long-term debt was disclosed as a current liability on the current year's December 31 balance sheet?millionb. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-termdebt?million Increasec. If Connie's Bistro did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcomingyear?million

a. From the data, current portion of long-term debt on December 31 (Current Year) is $227,600…

Answered: Current portion of long-term debt…

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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Liability Transactions The following items were selected from among the transactions completed by Sherwood Co. during the current year: Feb. 15. Purchased merchandise on account from Kirkwood Co., $144,000, terms n/30. Mar. 17. Issued a 60-day, 7% note for $144,000 to Kirkwood Co., on account. May 16. Paid Kirkwood Co. the amount owed on the note of March 17. June 15. Borrowed $152,400 from Triple Creek Bank, issuing a 60-day, 8% note. July 21. Purchased tools by issuing a $99,000, 90-day note to Poulin Co., which discounted the note at the rate of 8%. Aug. 14. Paid Triple Creek Bank the interest due on the note of June 15 and renewed the loan by issuing a new 60-day, 10% note for $152,400. (Journalize both the debit and credit to the notes payable account.) Oct. 13. Paid Triple Creek Bank the amount due on the note of August 14. Oct. 19. Paid Poulin Co. the amount due on the note of July 21. Dec. 1. Purchased office equipment from Greenwood Co. for $96,000, paying…
Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Jacinto Company issued $6,500,000 of six-year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 8%, resulting in Jacinto Company receiving cash of $6,194,985. a. Journalize the entries to record the following: Issuance of the bonds. First semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. Second semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar.
ries for issuing bonds Instructions Chart of Accounts Journal structions homson Co. produces and distributes semiconductors for use by computer anufacturers. Thomson Co. issued $240,000 of 10-year, 9% bonds on May 1 the current year at face value, with interest payable on May 1 and November The fiscal year of the company is the calendar year. ournalize the entries to record the following selected transactions for the current ear. Refer to the Chart of Accounts for exact wording of account titles. May Nov. Dec. erk My Work 1 Issued the bonds for cash at their face amount. Paid the interest on the bonds. 31 Recorded accrued interest for two months. 1 Journal 1 2 3 4 5 6 7 DATE DESCRIPTION Adjusting Entries JOURNAL POST. REF. DEBIT
Instructions The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year. Year 1 July 1 Issued $75,100,000 of 20-year, 8% callable bonds dated July 1, Year 1, at a market (effective) rate of 10%, receiving cash of $62,213,861. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $440,000 by issuing a six-year, 7% installment note to Nicks Bank. The note requires annual payments of $92,310, with the first payment occurring on September 30, Year 2. Dec. 31 Accrued S7,700 of interest on the installment note. The interest is payable on the date of the next installment note payment. 31 Paid the semiannual interest on the bonds. The bond discount amortization of S322,153 is combined with the semiannual interest payment, Year 2
Required information Skip to question [The following information applies to the questions displayed below.] Dunphy Company issued $50,000 of 7.0%, 10-year bonds at par value on January 1. Interest is paid semiannually each June 30 and December 31. Analyze transactions by showing their effects on the accounting equation—specifically, identify the accounts and amounts (including + or −) for each transaction.
Liability Transactions The following items were selected from among the transactions completed by Sherwood Co. during the current year: Feb. 15. Purchased merchandise on account from Kirkwood Co., $144,000, terms n/30. Mar. 17. Issued a 60-day, 8% note for $144,000 to Kirkwood Co., on account. May 16. Paid Kirkwood Co. the amount owed on the note of March 17. June 15. Borrowed $138,000 from Triple Creek Bank, issuing a 60-day, 9% note. July 21. Purchased tools by issuing a $105,000, 90-day note to Poulin Co., which discounted the note at the rate of 9%. Aug. 14. Paid Triple Creek Bank the interest due on the note of June 15 and renewed the loan by issuing a new 60-day, 10% note for $138,000. (Journalize both the debit and credit to the notes payable account.) Oct. 13. Paid Triple Creek Bank the amount due on the note of August 14. Oct. 19. Paid Poulin Co. the amount due on the note of July 21. Dec. 1. Purchased office equipment from Greenwood Co. for $108,000,…
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Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Instructions Chart of Accounts Journal Final Question Instructions Favreau Corporation wholesales repair products to equipment manufacturers. On April 1. Year 1, Favreau Corporation issued $12,700,000 of five-year, 11% bonds at a market (effective) interest rate of 9%, receiving cash of S13,704,946. Interest is payable semiannually on April 1 and October 1. Required: a. Journalize the entries to record the following. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 1. Issuance of bonds on April 1. 2. First interest payment on October 1 and amortIzation of bond premium for six months, using the straight-line method. The bond premium amortization is combined with the semiannual…
pare.3
.
The adjusted trial balance for Bramble Corp. at the end of the current year contained the following accounts. 5-year Bonds Payable 8% $1170000 Bond Interest Payable 37000 Premium on Bonds Payable 73000 Notes Payable (3 mo.) 29000 Notes Payable (5 yr.) 120000 Mortgage Payable ($11000 due currently) 146000 Salaries and Wages Payable 13000 Taxes Payable (due 3/15 of next yr) 18000 The total long-term liabilities reported on the balance sheet are $1498000. $1509000. $1425000. $1436000.

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