E9-5B: (Statement of Financial Position - Current vs Non-current Classification) KIWI Corporation is in the process of preparing its December 31, 2014, statement of financial position. There are some questions as to the proper classification of the following items: a. P 50,000 in cash set aside in a savings account to pay bonds payable. The bonds mature in 2018. b. Prepaid rent of P24,000, covering the period January 1, 2015, through December 31, 2016. c. Note payable of P200,000. The note is payable in annual installments of P20,000 each, with the first instalment payable on March 1, 2015. d. Accrued interest payable of P12,000 related to the note payable. e. Investment in trading securities of other corporations, P60,000. Cone intends to sell one-half of the securities in 2015. Instruction: Determine the current and non-current components of the above selected transactions using the table below. ASSETS LIABILITIES Current Non-current Current Non-current A В D E total

E9-5B: (Statement of Financial Position - Current vs Non-current Classification) KIWI Corporation is in the process of preparing its December 31, 2014, statement of financial position. There are some questions as to the proper classification of the following items: a. P 50,000 in cash set aside in a savings account to pay bonds payable. The bonds mature in 2018. b. Prepaid rent of P24,000, covering the period January 1, 2015, through December 31, 2016. c. Note payable of P200,000. The note is payable in annual installments of P20,000 each, with the first instalment payable on March 1, 2015. d. Accrued interest payable of P12,000 related to the note payable. e. Investment in trading securities of other corporations, P60,000. Cone intends to sell one-half of the securities in 2015. Instruction: Determine the current and non-current components of the above selected transactions using the table below. ASSETS LIABILITIES Current Non-current Current Non-current A В D E total

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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