-Your answer is partially correct. Indigo Corporation is preparing its December 31, 2025, balance sheet. The following items may be reported as either a current or long-term liability. 1. On December 15, 2025, Indigo declared a cash dividend of $2.40 per share to stockholders of record on December 31. The dividend is payable on January 15, 2026. Indigo has issued 1,000,000 shares of common stock, of which 50,000 shares are held in treasury. 2. 3. At December 31, bonds payable of $111,299,000 are outstanding. The bonds pay 12% interest every September 30 and mature in installments of $27,824,750 every September 30, beginning September 30, 2026. At December 31, 2024, customer advances were $13,603,000. During 2025, Indigo collected $30,634,000 of customer advances; advances of $26,948,000 should be recognized in income. For each item above, indicate the dollar amounts to be reported as a current liability and as a long-term liability, if any. 1. Dividends payable 2. Bonds payable (September 30, 2026 installment) Bonds payable (Other than September 30, 2026 installment) Interest payable 3. Customer advances Reported as $ GA A EA 2,280,000 Current Liability 27824750 Current Liability 83,474,25 Long-term Liability $ FA 4,674,180 Current Liability LA 17,289,000 Current Liability
-Your answer is partially correct. Indigo Corporation is preparing its December 31, 2025, balance sheet. The following items may be reported as either a current or long-term liability. 1. On December 15, 2025, Indigo declared a cash dividend of $2.40 per share to stockholders of record on December 31. The dividend is payable on January 15, 2026. Indigo has issued 1,000,000 shares of common stock, of which 50,000 shares are held in treasury. 2. 3. At December 31, bonds payable of $111,299,000 are outstanding. The bonds pay 12% interest every September 30 and mature in installments of $27,824,750 every September 30, beginning September 30, 2026. At December 31, 2024, customer advances were $13,603,000. During 2025, Indigo collected $30,634,000 of customer advances; advances of $26,948,000 should be recognized in income. For each item above, indicate the dollar amounts to be reported as a current liability and as a long-term liability, if any. 1. Dividends payable 2. Bonds payable (September 30, 2026 installment) Bonds payable (Other than September 30, 2026 installment) Interest payable 3. Customer advances Reported as $ GA A EA 2,280,000 Current Liability 27824750 Current Liability 83,474,25 Long-term Liability $ FA 4,674,180 Current Liability LA 17,289,000 Current Liability
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:-Your answer is partially correct.
Indigo Corporation is preparing its December 31, 2025, balance sheet. The following items may be reported as either a current or
long-term liability.
1. On December 15, 2025, Indigo declared a cash dividend of $2.40 per share to stockholders of record on December 31. The
dividend is payable on January 15, 2026. Indigo has issued 1,000,000 shares of common stock, of which 50,000 shares are
held in treasury.
2.
3.
At December 31, bonds payable of $111,299,000 are outstanding. The bonds pay 12% interest every September 30 and
mature in installments of $27,824,750 every September 30, beginning September 30, 2026.
At December 31, 2024, customer advances were $13,603,000. During 2025, Indigo collected $30,634,000 of customer
advances; advances of $26,948,000 should be recognized in income.
For each item above, indicate the dollar amounts to be reported as a current liability and as a long-term liability, if any.
1.
Dividends payable
2.
Bonds payable (September 30, 2026 installment)
Bonds payable (Other than September 30, 2026 installment)
Interest payable
3.
Customer advances
Reported as
$
GA
A
EA
2,280,000
Current Liability
27824750
Current Liability
83,474,25
Long-term Liability
$
FA
4,674,180
Current Liability
LA
17,289,000
Current Liability
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