The following are selected items from the accounting records of Denver Chocolates for the year ended December 31, 2015: Note payable to Northwest Bank. Income taxes payable.. Accrued expenses and payroll taxes Mortgage note payable. Accrued interest on mortgage note payable. Trade accounts payable.. Unearned revenue Potential liability in pending lawsuit. Other Information $500,000 40,000 60,000 750,000 . 5,000 250,000 15,000 100,000 1. The note payable to Northwest Bank is due in 60 days. Arrangements have been made to renew this note for an additional 12 months. 2. The mortgage requires payments of $6,000 per month. An amortization table shows that its balance will be paid down to $739,000 by December 31, 2016. (Note: That is, the unpaid balance will be $739,000 on December 31, 2016). 3. The accrued interest on the mortgage payable is paid monthly. The next payment is due near the end of the first week in January 2016. 4. Denver Chocolates has been sued for $160,000 in a contract dispute. As of now, it is not possible to know whether the company will win or lose in the lawsuit. It is also not possible to make a reasonable estimate of the possible loss that the company may incur if they lost. Instructions: Using the information provided, prepare the current and long-term liability sections of the company's balance sheet dated December 31, 2015. (Within each classification, items may be listed in any order.)
The following are selected items from the accounting records of Denver Chocolates for the year ended December 31, 2015: Note payable to Northwest Bank. Income taxes payable.. Accrued expenses and payroll taxes Mortgage note payable. Accrued interest on mortgage note payable. Trade accounts payable.. Unearned revenue Potential liability in pending lawsuit. Other Information $500,000 40,000 60,000 750,000 . 5,000 250,000 15,000 100,000 1. The note payable to Northwest Bank is due in 60 days. Arrangements have been made to renew this note for an additional 12 months. 2. The mortgage requires payments of $6,000 per month. An amortization table shows that its balance will be paid down to $739,000 by December 31, 2016. (Note: That is, the unpaid balance will be $739,000 on December 31, 2016). 3. The accrued interest on the mortgage payable is paid monthly. The next payment is due near the end of the first week in January 2016. 4. Denver Chocolates has been sued for $160,000 in a contract dispute. As of now, it is not possible to know whether the company will win or lose in the lawsuit. It is also not possible to make a reasonable estimate of the possible loss that the company may incur if they lost. Instructions: Using the information provided, prepare the current and long-term liability sections of the company's balance sheet dated December 31, 2015. (Within each classification, items may be listed in any order.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Ll.135.
Transcribed Image Text:The following are selected items from the accounting records of Denver Chocolates for the year ended December 31,
2015:
Note payable to Northwest Bank.
Income taxes payable.
Accrued expenses and payroll taxes
Mortgage note payable.
Accrued interest on mortgage note payable
Trade accounts payable.
Unearned revenue..
Potential liability in pending lawsuit..
Other Information
$500,000
40,000
60,000
750,000
5,000
250,000
15,000
. 100,000
1. The note payable to Northwest Bank is due in 60 days. Arrangements have been made to renew this note for an
additional 12 months.
2. The mortgage requires payments of $6,000 per month. An amortization table shows that its balance will be paid down
to $739,000 by December 31, 2016. (Note: That is, the unpaid balance will be $739,000 on December 31, 2016).
3. The accrued interest on the mortgage note payable is paid monthly. The next payment is due near the end of the first
week in January 2016.
4. Denver Chocolates has been sued for $160,000 in a contract dispute. As of now, it is not possible to know whether the
company will win or lose in the lawsuit. It is also not possible to make a reasonable estimate of the possible loss that the
company may incur if they lost.
Instructions: Using the information provided, prepare the current and long-term liability sections of the company's
balance sheet dated December 31, 2015. (Within each classification, items may be listed in any order.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education