Laura, the accountant for Bargain Ltd., is currently preparing the December 31, 2024, statement of financial position, and she asked you to help her classify the following liabilities: Identify each of the liabilities as current or non-current. (Note that some liabilities may be classified partially as current and partially as non-current.) a. b. C. d. e. f. g. a. b. During 2024, Bargain borrowed $7,930 from its line of credit to cover a cash shortage. At the end of December, Bargain owed suppliers $183,000 for goods purchased during the last quarter of the year, which will be settled on March 31, 2025. In October 2020, Bargain obtained a $122,000 five-year loan repayable at maturity. The company provides a one-year assurance-type warranty on its products and in December 2024 estimated a warranty expense of $54,900. Bargain has a $30,500 loan, of which $2,440 is due to be repaid in 2025. During December, Bargain withheld $4,270 from employee wages for CPP, EI, and taxes. The company is required to remit the amount to the government on January 14, 2025. In the month of November, Bargain accepted $213,500 in deposits for goods to be delivered to customers by June 2025. $ $ Current $ $ Long-term
Laura, the accountant for Bargain Ltd., is currently preparing the December 31, 2024, statement of financial position, and she asked you to help her classify the following liabilities: Identify each of the liabilities as current or non-current. (Note that some liabilities may be classified partially as current and partially as non-current.) a. b. C. d. e. f. g. a. b. During 2024, Bargain borrowed $7,930 from its line of credit to cover a cash shortage. At the end of December, Bargain owed suppliers $183,000 for goods purchased during the last quarter of the year, which will be settled on March 31, 2025. In October 2020, Bargain obtained a $122,000 five-year loan repayable at maturity. The company provides a one-year assurance-type warranty on its products and in December 2024 estimated a warranty expense of $54,900. Bargain has a $30,500 loan, of which $2,440 is due to be repaid in 2025. During December, Bargain withheld $4,270 from employee wages for CPP, EI, and taxes. The company is required to remit the amount to the government on January 14, 2025. In the month of November, Bargain accepted $213,500 in deposits for goods to be delivered to customers by June 2025. $ $ Current $ $ Long-term
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Laura, the accountant for Bargain Ltd., is currently preparing the December 31, 2024, statement of financial position, and she asked
you to help her classify the following liabilities:
Identify each of the liabilities as current or non-current. (Note that some liabilities may be classified partially as current and partially as
non-current.)
a.
b.
C.
d.
e.
f.
g.
a.
b.
During 2024, Bargain borrowed $7,930 from its line of credit to cover a cash shortage.
At the end of December, Bargain owed suppliers $183,000 for goods purchased during the last quarter of the year, which will
be settled on March 31, 2025.
In October 2020, Bargain obtained a $122,000 five-year loan repayable at maturity.
The company provides a one-year assurance-type warranty on its products and in December 2024 estimated a warranty
expense of $54,900.
Bargain has a $30,500 loan, of which $2,440 is due to be repaid in 2025.
During December, Bargain withheld $4,270 from employee wages for CPP, EI, and taxes. The company is required to remit the
amount to the government on January 14, 2025.
In the month of November, Bargain
accepted $213,500 in deposits for goods to be delivered to customers by June 2025.
LA
LA
$
Current
LA
$
Long-term
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