Diane Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end ofthe year:Total assetsTotal noncurrent assetsLiabilities:Notes payable (8%, due in 5 years)Accounts payableIncome taxes payableLiability for withholding taxesRent revenue collected in advanceBonds payable (due in 15 years)Wages payableProperty taxes payableNote payable (10%, due in 6 months)Interest payableCommon stock$530,000324,00019,00055,00014,0002,00011,00097,00011,0007,00013,000500200,000Required:1-a. What is the amount of current liabilities?Current liabilities1-b. Compute working capital.Working capital

1-a Calculation of current liabilities- Accounts Payable $55,000 Income Tax Payables $14,000…

Answered: Diane Corporation is preparing its…

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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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.
Kier Company issued $740,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 3-year term to maturity. The bonds have a 5.50% stated rate of interest interest is payable in cash on December 31 each year. Based on this information alone, what are the amounts of interest expense and cash flows from operating activities, respectively, that will be reported in the financial statements for the year ending December 31, Year 1? Multiple Choice O Zero and $40,700 $40,700 and $40,700 Zero and Zero $40,700 and Zero
The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: Received $50,000 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. Received $130,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. Paid $62,000 cash for other operating expenses during the year. Paid the sales tax due on $110,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. Recognized the accrued interest at December 31, Year 1. The following transactions apply to Walnut Enterprises for Year 2: Paid the balance of the sales tax due for Year 1. Received $201,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. Repaid the principal of the note and applicable interest on April 1, Year 2. Paid $102,500 of other…
In the past year, Blossom Corporation reported assets of $230229000. Liabilities reported on the balance sheet on the same date were reported at $69091655. Blossom issued a new note payable for cash during the year. The 8%, 5-year note was issued at a face value of $5008000. What is the company's debt to asset ratio after the refinance? O 29.37% 31.50% 32.18% O 30.01%
Balance sheet and income statement data indicate the following: Bonds payable, 6% (due in 15 years) $1,327,705 Income before income tax for year 443,320 Income tax for year 132,996 Interest payable 33,000 Interest receivable 19,000 Interest expense 79,662 Based on the data presented above, what is the times interest earned ratio? (Round to two decimal places.) Oa. 2.90 Ob. 6.57 Oc. 3.90 Od. 5.56
Godo
The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: Received $50,000 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. Received $130,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. Paid $62,000 cash for other operating expenses during the year. Paid the sales tax due on $110,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. Recognized the accrued interest at December 31, Year 1. The following transactions apply to Walnut Enterprises for Year 2: Paid the balance of the sales tax due for Year 1. Received $201,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. Repaid the principal of the note and applicable interest on April 1, Year 2. Paid $102,500 of other…
Record the Year 1 transactions in general journal form.
A company issues $12 million in term bonds on March 1, Year One, for face value. The bonds pay a stated cash interest rate of 10 percent per year. Interest payments are made every February 28 and August 31. On financial statements for Year One, what is recognized as interest expense on the income statements? Responses $12,000,000 $300,000 $1,200,000 $1,000,000

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