None New Wave Co. sold 14,500 annualsubscriptions to Game Life for $54 inDecember 2016. These new subscribers willreceive monthly issues, beginning in January2017. In addition, the business had a taxableincome of $492,000 during the first calendarquarter of 2017. The federal tax rate is 40%.Quarterly tax payments will be made on April7, 2017.Prepare the Current Liabilities section of thebalance sheet for New Wave Co. on March 31,2017.

Step 1: define Current LiabilitiesCurrent liabilities are the obligations that a business incurs…

Answered: New Wave Co. sold 14,500 annual…

Principles of Accounting Volume 1

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Author:OpenStax

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Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)
Provide the right answer
Bon Nebo Co. sold 12,000 annual subscriptions of Bjorn for $44 during December 2015. These new subscribers will receive monthly issues, beginning in January 2016. In addition, the business had taxable income of $332,000 during the first calendar quarter of 2016. The federal tax rate is 38 %. A quarterly tax payment will be made on April 12, 2016. Prepare the "Current liabilities" section of the balance sheet for Bon Nebo Co. on March 31, 20Y6. Bon Nebo Co. Current Liabilities Section of Balance Sheet March 31, 2016 Line Item Description Current liabilities: Advances on magazine subscriptions Federal income taxes payable Total current liabilities Amount 1000
Bon Nebo Co. sold 11,500 annual subscriptions of Bjorn for $60 during December 20Y5. These new subscribers will receive monthly issues, beginning in January 20Y6. In addition, the business had taxable income of $436,000 during the first calendar quarter of 20Y6. The federal tax rate is 40%. A quarterly tax payment will be made on April 12, 20Y6. Prepare the “Current liabilities” section of the balance sheet for Bon Nebo Co. on March 31, 20Y6. Bon Nebo Co.Current Liabilities Section of Balance SheetMarch 31, 20Y6 Line Item Description Amount Current liabilities: Advances on magazine subscriptions $Advances on magazine subscriptions Federal income taxes payable Federal income taxes payable Total current liabilities $Total current liabilities
Bon Nebo Co. sold 30,000 annual subscriptions of Bjorn for $105 during December 20Y5. These new subscribers will receive monthly issues, beginning in January 20Y6. In addition, the business had taxable income of $970,000 during the first calendar quarter of 20Y6. The federal tax rate is 40%. A quarterly tax payment will be made on April 12, 20Y6. Prepare the “Current liabilities” section of the balance sheet for Bon Nebo Co. on March 31, 20Y6. Current liabilities: Advances on magazine subscriptions Federal income taxes payable Total current liabilities
Bon Nebo Co. sold 13,000 annual subscriptions of Bjorn for $63 during December 20Y5. These new subscribers will receive monthly issues, beginning in January 20Y6. In addition, the business had taxable income of $516,000 during the first calendar quarter of 20Y6. The federal tax rate is 40%. A quarterly tax payment will be made on April 12, 20Y6. Prepare the “Current liabilities” section of the balance sheet for Bon Nebo Co. on March 31, 20Y6. Bon Nebo Co.Current Liabilities Section of Balance SheetMarch 31, 20Y6 Current liabilities: Advances on magazine subscriptions __________ Federal income taxes payable __________ Total current liabilities _____________
On May 1, 2021, Nees Manufacturing lends $10,000 to Roberson Supply using a 9% note due in 12 months. Nees has a December 31 year-end. Calculate the amount of interest revenue Nees will report in its 2021 and 2022 income statements. a. 2021 = $300; 2022 = $600.b. 2021 = $600; 2022 = $300.c. 2021 = $900; 2022 = $0.d. 2021 = $0; 2022 = $900.
Milton Company borrowed $95,000 on January 1, 2020, by signing a 6% promissory note. The note is to be repaid in full by December 31, 2025. On December 31 of each year, Milton makes one payment on the installment note comprising blended interest and principal components. The amortization schedule for the note is presented below. Milton has a March 31 year-end. The company does not make monthly adjustments, but rather makes adjusting entries every quarter. Beginning Note Payable Interest Expense Repaid Principal on Note Payable Ending Note Payable Year (6%) 2020 95,000 5,700 13,619 81,381 66,944 14,437 15,303 2021 81,381 4,883 51,641 35,420 2022 66,944 4,017 2023 51,641 3,098 16,221 2024 35,420 2,125 17,194 18,226 18,226 (0) 2025 18,226 1,094 Assuming the company makes the required annual payments on December 31, use the amortization schedule to determine the following answers: DO NOT use dollar signs ($) or commas (.) in your responses, just simply type the number with no formatting…
Barton Chocolates used a promissory note to borrow $1,000,000 on July 1, 2015, at an annualinterest rate of 6 percent. The note is to be repaid in yearly installments of $200,000, plusaccrued interest, on June 30 of every year until the note is paid in full (on June 30, 2020). Showhow the results of this transaction would be reported in a classified balance sheet prepared as ofDecember 31, 2015.
.
On the first day of each month, Bell Company received from Kaye Company an escrow deposit of P375,000 for real estate taxes. The entity recorded the P375,000 in an escrow account. Kaye's 2020 real estate tax is P4,200,000, payable in equal instalments on the first day of each calendar quarter. On January 1, 2020, the balance in the escrow account was P450,000. On September 30, 2020, what amount should be reported as an escrow liability?

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