eto ABC Con coupo bag of dog TOod it sells. return for eight coupons, customers receive a leash. The leashes cost Deeto ABC P 3 each. Deeto ABC estimates that 40 percent of the coupons will be redeemed. Data for 2020 and 2021 are as follows 2020 2021 Bags of dog food sold Leashes purchased Coupons redeemed 500,000 600,000 18,000 22,000 120,000 150,000

eto ABC Con coupo bag of dog TOod it sells. return for eight coupons, customers receive a leash. The leashes cost Deeto ABC P 3 each. Deeto ABC estimates that 40 percent of the coupons will be redeemed. Data for 2020 and 2021 are as follows 2020 2021 Bags of dog food sold Leashes purchased Coupons redeemed 500,000 600,000 18,000 22,000 120,000 150,000

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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5. Which of the following is a characteristic of a current liability? OA current liability must be of a known amount. OA current liability is due within one year or one operating cycle, whichever is longer. A current liability must be of an estimated amount. Current liabilities are subtracted from long-term liabilities on the balance sheet.
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19 On September 30, 2024, Truckee Garbage leased equipment from a supplier and agreed to pay $125,000 annually for 15 years beginning September 30, 2025. Generally accepted accounting principles require that a liability be recorded for this lease agreement for the present value of scheduled payments. Accordingly, at inception of the lease, Truckee recorded a $1,214,031 lease liability. Determine the interest rate implicit in the lease agreement. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
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6. On August 1, 2012, Gabriel Company leased a machine to Baby Company for a six-year period requiring payments of P100,000 at the beginning of each year. The machine cost P480,000, which is the fair value at the lease date, and has a useful life of eight years with no residual value. Gabriel's implicit interest rate is 10% and present value factors are rounded off to three decimal places. Gabriel appropriately recorded the lease as a direct financing lease. /
Refinancing agreement: Entity C’s liabilities as of December 31, 20x1 (current year-end) include the ff: P10,000,000, 8-year loan maturing on December 31, 20x2. Entity C intends to refinance this liability on a long-term basis on February 2, 20x2. Entity C’s 20x1 financial statements were authorized for issue on March 31, 20x2 P6,000,000 loan that is payable on demand. There is no indication as of December 31, 20x1 that the creditor will demand repayment within the next 12 months. P14,000,000 loan due on December 31, 20x9. Entity C breached a loan provision accelerating the repayment of this loan within the next 12 months. However, on January 12, 20x2, the creditor granted entity C a 12-month grace period to rectify the breach, within which the creditor will not demand immediate payment. Requirement: Compute for the total current liabilities as of December 31, 20x1.