Dwight's Dec. 31, 2021, financial statements were issued on Mar. 31,2022. OnOn Jan. 15, 2022, the entire P400,000 balance of the 16percent note was refinanced by issuance of a long-term obligationpayable in a lump sum. In addition, on Mar. 10, 2022, Dwightconsummated a noncancelable agreement with the lender to refinancethe 14 percent, P250,000 note on a long-term basis, on readilydeterminable terms that have not yet been implemented. Both partiesare financially capable of honoring the agreement, and there havebeen no violations of the agreement's provisions.GLASSWonioOn the Dec. 31, 2021, statement of financial position, the amount ofthe notes payable that Dwight should classify as noncurrent obligationsisa. P100,000b. P250,000c. P300,000d. P650,00010507723og MCP 31-4- Current liabilitiesIncluded in Dwight Corporation's liability account balances at Dec. 31,2021, were the following:14% - note payable issued Oct. 1, 2019,maturing Sept. 30, 202216% - note payable issued Apr. 1, 2019,payable in six annual installments ofP100,000 beginning Apr. 1, 2020P250,000400,000

An obligation is classified as non current liability, if Liability is to be settled within next 12…

Answered: MCP 31-4 Current liabilities Included…

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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On January 1, 2021, Sunland Company sold $4900000 of its 10% bonds for $4337950 to yield 12%. Interest is payable semiannually on January 1 and July 1. What amount should Sunland report as interest expense for the six months ended June 30, 2021? $245000 $294000 $260277 $216904
Solar Energy Inc. issued a $915,000, 7.0%, five-year bond on October 1, 2023. Interest is paid annually each October 1. Solar's year-end is December 31. Period Ending Cash Interest Paid Period Interest Expense Discount Amort Unamortized Carrying Discount Value Oct. 1/23 $36,533 $878,467 Oct. 1/24 Oct. 1/25 $ 64,050 64,050 $ 70,277 $ 6,227 30,306 884,694 78,776 6,726 23,580 891,420 Oct. 1/26 64,050 71,314 17.264 16,316 898,684 Oct. 1/27 64,058 71,895 7,845 8,472 Oct. 1/28 64,050 72,522 8,471 996, 529 915,000 $320,250 $356,784 $36,533 Assume that interest has already been paid on October 1, 2026. Required: Using the amortization schedule provided above, record the entry to retire the bonds on October 1, 2026, for cash of: a. $888,500 b. $898,684 c. $901,900 View transaction list Journal entry worksheet 1 2 3 Record the retirement of bond for $888,500. Note: Enter debits before credits. Date Oct. 1 2026 General Journal Debit Credit Record entry Clear entry View general journal
TCA Company issued on June 30, 2022 a P 1,200,000, 10% promissory note due on June 30, 2025 for the purchase of an equipment. Equal principal amount plus interest on the outstanding balance of the principal are payable annually every June 30 starting June 30,2023. The company’s reporting date is every December 31. On December 31, 2022, the amount TCA Company will report in the non-current liabilities in its Statement of Financial Position is? On December 31, 2023, the amount TCA Company will report in the current liabilities in its Statement of Financial Position is?
Included in Dwight Corporation's liability account balances at Dec. 31, 2021, were the following: 14% note payable issued Oct. 1, 2019, maturing Sept. 30, 2022 16% note payable issued Apr. 1, 2019, payable in six annual installments of P100,000 beginning Apr. 1, 2020 P250,000 400,000 Dwight's Dec. 31, 2021, financial statements were issued on Mar. 31, 2022. On Jan. 15, 2022, the entire P400,000 balance of the 16 percent note was refinanced by issuance of a long-term obligation payable in a lump sum. In addition, on Mar. 10, 2022, Dwight consummated a noncancelable agreement with the lender to refinance the 14 percent, P250,000 note on a long-term basis, on readily determinable terms that have not yet been implemented. Both parties are financially capable of honoring the agreement, and there have been no violations of the agreement's provisions. a. P100,000 b. P250,000 c. P300,000 d. P650,000 On the Dec. 31, 2021, statement of financial position, the amount of the notes payable that…
On December 31, 2021, what total amount should be reported as current liabilities? a.) 1,066,000 b.) 1,077,000 c.) 1,004,000 d.) 1,146,000 e.) none of the above
On January 1, 2020, Pharoah Company, a calendar-year company, issued $2160000 of notes payable, of which $540000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2020, is: O Current liabilities, $540000; Long-term Debt, $1080000. O Current liabilities, $2160000. O Current liabilities, $540000; Long-term Debt, $1620000. O Long-term debt, $2160000.
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GE Presented here are long-term liability items for Marin Inc. at December 31, 2022. Bonds payable (due 2026) Notes payable (due 2024) Discount on bonds payable $720,000 78,000 28,000 Prepare the long-term liabilities section of the balance sheet for Marin Inc. MARIN INC. Balance Sheet (Partial) $
The following amortization and interest schedule reflects the issuance of 10-year bonds by Wildhorse Corporation on January 1, 2019, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statements are prepared once yearly. Year 1/1/2019 2020 2021 2019 $12,500 2022 2023 2024 2025 2026 2027 Cash 2028 Amortization Schedule $13,305 12,500 13,401 12,500 13,510 12,500 13,631 12,500 13,767 12,500 13,919 14,089 12,500 12,500 12,500 Interest 12,500 14,280 14,493 14,731 Amount Unamortized $14,126 13,321 12,420 11,410 10,279 9,012 7,593 6,004 4,224 2,231 Carrying Value $ 110,874 111,679 112,580 113,590 114,721 115,988 117,407 118,996 120,776 122,769 125,000
The following amortization schedule indicates the interest and principal to be repaid on an installment note established January 1, 2021, for a company with a March 31 fiscal year-end. Period 1/1-12/31, Year 1 Interest Expense on Notes Payable $ 560 424 #TITT 286 144 1,414 1/1-12/31, Year 2 1/1-12/31, Year 3 1/1-12/31, Year 4 Total Beginning Notes Payable $ 28,000 21, 207 14, 278 Repaid Principal Ending Notes 7,210 $ 6,793 6,929 7,068 7,210 28,000 Payable $ 21,207 14,278 7,210 Required: 1. Assuming the company makes the required annual payments on December 31, use the amortization schedule to determine (a) the amount of the (rounded) annual payment; (b) the amount of Interest Expense to report in the year ended March 31, 2021; (c) the amount of Interest Expense to report in the year ended March 31, 2022; (d) the Notes Payable balance at January 1, 2024; and (e) the total interest and total principal paid over the note's entire life 2. Assuming the company makes adjustments at the end…
Situation 1- an entity issued 6,000,000 of 9% ten years bonds on june 30,2019 for 5,625,000. This price provided a 10% yield on the bonds. Interest is payable semiannually ever june 30 and december 31 Situation 2- an entity provided warranty for all products sold during 2019. The entuty sold 200,000 units during the current year. It estimated that 75% of the products sold will have no defects, 15% of the products sold will have a minor defects is P100 per unit whilw the ocst of the major defect is P300. The entity is also involvd in a tax dispute with the BIR in 2019. Based on legal advice, there is a 40% chance that the entity will lose the case and that entity will have to pay P500,000 What is the carrying amount of the bonds on December 31, 2019 5,647,500 5,636,250 5,613,750 6,000,000 What total amount of provisions should be recorded on December 31, 2019

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