E9-5B: (Statement of Financial Position – Current vs Non-current Classification)KIWI Corporation is in the process of preparing itsDecember 31, 2014, statement of financial position. Thereare some questions as to the proper classification of thefollowing items:a. P 50,000 in cash set aside in a savings account to paybonds payable. The bonds mature in 2018.b. Prepaid rent of P24,000, covering the period January 1,2015, through December 31, 2016.e. Note payable of P200,000. The note is payable in annualinstallments of P20,000 each, with the first instalmentpayable on March 1, 2015.d. Accrued interest payable of P12,000 related to the notepayable.Investment in trading securities of other corporations,P60,000. Cone intends to sell one-half of the securities inс.е.2015.Instruction:Determine the current and non-currentcomponents of the above selected transactions using thetable below.ASSETSLIABILITIESCurrent Non-current Current Non-currentA1200050000B12000C20000180,000D12,000E60,000total 720006200032000180,000

Currents assets and liabilities are those which are highly liquid in nature, means ready to be in…

Answered: E9-5B: (Statement of Financial Position…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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"On 1 September 2014, Select Company borrowed P600,000 from a bank and signed a 12%, six-month note payable, with interest on the note due at maturity. The total amount of the current liability (including interest payable) for this loan that appears in Select Company's statement of financial position at 31 December 2014 is: " O A. P600,000. O B, P636,000. OC P672,000. O D. P624,000.
C.S.Sunland Company had the following transactions involving notes payable. July 1, 2025 Nov. 1, 2025 Dec. 31, 2025 Feb. 1, 2026 Apr. 1, 2026 Borrows $55,950 from First National Bank by signing a 9-month, 8% note. Borrows $59,000 from Lyon County State Bank by signing a 3-month, 6% note. Prepares adjusting entries. Pays principal and interest to Lyon County State Bank. Pays principal and interest to First National Bank. Prepare journal entries for each of the transactions. (List all debit entries before credit entries. Credit acc
Please show relevant solution CORRECT ANSWER IS 5,250,000
Blue Inc. reports under IFRS and has adopted the policy of classifying interest received as an investing activity. During 2023, Blue lent $29,000 to a key supplier in exchange for a two-year interest-bearing promissory note. Interest revenue earned on the note and recorded on the statement of income was in the amount of $1,230 and a balance of $410 for interest receivable was reported on the statement of financial position at December 31, 2023, relating to the note. Prepare Blue's cash flows from (used by) investing activities section of the statement of cash flows. (Show amounts that decrease cash flow with either a negative sign e.g. -15,000 or in parenthesis e.g. (15,000).) Blue Inc. Statement of Cash Flows > tA tA
The chief accountant of KYB Ltd has prepared and presented the following schedule for long term debt for the audit of financial statements for the year ended March 31, 2020: Notes Payable Description Interest Rates Maturity Date Opening Balance Additions Payments to date Closing Balance Mortgage Payable 4.5% 2050 2,415,886 172,757 2,588,643 Unsecured Notes Payable 5.5% 2030 5,879,800 850,000 5,029,800 Secured Bonds 5.75% 2021 6,228,000 1,272,000 7,500,000 Convertibles Debentures 3.5% 2025 3,500,000 3,500,00 Total 14,520,686 4,944,757 850,000 18,615,443 Required: Describe substantive procedures the auditor should perform to confirm the transactions in the schedule above for the year-end.
17,18,19 and 20
In the case of the notes payable due to bank, supposing the entity has the discretion to refinance the obligation for at least 12 months after the given maturity date, as seen in its loan agreement,A. Compute for the current liabilities as of December 31, 2021.B. Compute for the non-current liabilities as of December 31, 2021.
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The following items were identified to comprise CHI company’s liabilities as of December 31, 2016 Accounts payable P500,000 6% notes payable – due January 15, 2017 750,000 7% notes payable – due January 31, 2017 1,200,000 8% notes payable – due January 31, 2017 1,500,000 The following information was made available at the time the 2016 financial statements were being prepared: The accounts payable balance included a P150,000 advance from the company’s president which is due on June 30, 2018 The board decided unanimously that it would refinance its 6% notes from bulls lending company. On December 31, 2016. CHI Company completed an agreement with bears financing company to refinance its existing note 7% with another one maturing on January 31, 2018. At January 2, 2017 CHI company completed an agreement with cubs financing company rescheduling the maturity date of the 8% notes to January 31, 2018 How much is the total…
Consider the following liabilities of Future Brands, Inc., at December 31, 2016, the company’s fiscal year-end. Should they be reported as current liabilities or long-term liabilities? 1. $77 million of 8% notes are due on May 31, 2020. The notes are callable by the company’s bank, beginning March 1, 2017. 2. $102 million of 8% notes are due on May 31, 2021. A debt covenant requires Future to maintain a current ratio (ratio of current assets to current liabilities) of at least 2 to 1. Future is in violation of this requirement but has obtained a waiver from the bank until May 2017, since both companies feel Future will correct the situation during the first half of 2017.
Marshall Travel, disclosed the following rounded amounts (in millions) concerning the Allowance for Doubtful Accounts on its Form 10- K annual report. Year 2018 2017 2016 Allowance for Doubtful Accounts (dollars in millions) Increases for Bad Debt Expense Beginning Balance $ 42 36 38 Req 1A $ 30 31 20 Required: 1-a. Prepare a T-account for the Allowance for Doubtful Accounts and enter into it the 2016 amounts from the above schedule. The balance at the beginning of each year in the Allowance for Doubtful Accounts is a credit balance. 1-b. Write the T-account in equation format to prove the above items account for the changes in the account. 2. Record summary journal entries for 2017 related to (a) estimating Bad Debt Expense and (b) writing off specific customer account balances. 3. Supply the missing information for 2018. 4. If Marshall Travel had written off an additional $31 of Accounts Receivable during 2018, by how much decreased? How much would Net Income have decreased? Complete…
What is the correct interest expense on the serial notes payable for 2022?

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