The following are selected items from the accounting records of Atlanta Peach for the year ended December 31, 2011:I have attached information as a image.Other InformationThe note payable to Southern Bank is due in 60 days. Arrangements have been made to renew this note for an additional 24 months.The mortgage requires payments of $10,000 per month. An amortization table shows that its balance will be paid down to $733,000 by December 31, 2012.Accrued interest on the mortgage note payable is paid monthly. The next payment is due near the end of the first week in January 2012.Atlanta Peach has been sued for $2,000,000 in a product damage case. It is not possible at this time, however, to make a reasonable estimate of the possible loss, if any, that the company may have sustained.Requirements:Using the information provided, prepare the current and long-term liability sections of the company’s balance sheet dated December 31, 2011. (Within each classification, items may be listed in any order.) Note payable to Southern Bank .Income taxes payable .Accrued expenses and payroll taxes.$ 250,00015,00026,000Mortgage note payable .Accrued interest on mortgage note payableTrade accounts payable750,00015,000275,000Unearned revenue33,000Potential liability in pending lawsuit .2,000,000

Answer: Since the note payable to N bank is due in 60 days, it is considered as a current liability.…

Answered: her Information The note payable to…

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 following are selected items from the accounting records of Atlanta Peach for the year ended December 31, 2011:

I have attached information as a image.

Other Information

The note payable to Southern Bank is due in 60 days. Arrangements have been made to renew this note for an additional 24 months.
The mortgage requires payments of $10,000 per month. An amortization table shows that its balance will be paid down to $733,000 by December 31, 2012.
Accrued interest on the mortgage note payable is paid monthly. The next payment is due near the end of the first week in January 2012.
Atlanta Peach has been sued for $2,000,000 in a product damage case. It is not possible at this time, however, to make a reasonable estimate of the possible loss, if any, that the company may have sustained.

Requirements:

Using the information provided, prepare the current and long-term liability sections of the company’s balance sheet dated December 31, 2011. (Within each classification, items may be listed in any order.)

Note payable to Southern Bank .
Income taxes payable .
Accrued expenses and payroll taxes.
$ 250,000
15,000
26,000
Mortgage note payable .
Accrued interest on mortgage note payable
Trade accounts payable
750,000
15,000
275,000
Unearned revenue
33,000
Potential liability in pending lawsuit .
2,000,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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