Financial and Managerial Accounting
15th Edition
ISBN: 9780357297162
Author: Carl S. Warren; Jefferson P. Jones; William B. Tayler, Ph.D., CMA
Publisher: Cengage Learning US
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Question
Chapter 10, Problem 7E
A.
To determine
Identify the amount of long-term debt that was disclosed as a current liability on the current year’s December 31
B.
To determine
Determine the amount of change in total current liabilities between the preceding year and the current year as a result of the current portion of long-term debt.
C.
To determine
Identify the amount of total long-term debt on December 31 of the upcoming year.
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Current portion of long-term debt PepsiCo, Inc. (PEP) reported the following information about its long-term debt in
the notes to a recent financial statement (in millions): Long-term debt consists of the following: Total long term-debt
Current portion December 31 Current Year $29,148 (2,848) $26,300 December 31 Preceding Year $28,295 (3,953)
$24,342 Long-term debt a. How much of the long-term debt was disclosed as a current liability on the current
year's December 31 balance sheet? $ million b. How much did the total current liabilities change between the
preceding year and the current year as a result of the current portion of long-term debt? million c. If PepsiCo did not
issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming
year? million
Current portion of long-term debt
PepsiCo, Inc. (PEP) reported the following information about its long-term debt in the notes to a recent financial statement (in millions):
Long-term debt…
Current portion of long-term debt
Connie's Bistro, Inc. reported the following information about its long-term debt in the notes to a recent financial statement (in millions):
Long-term debt consists of the following:
Total long term-debt
Current portion
December 31
Current Year
C.
$685,100
(198,700)
$486,400
million
December 31
Prior Year
Long-term debt
a. How much of the long-term debt was disclosed as a current liability on the current year's December 31 balance sheet?
$
$376,800
(185,000)
$191,800
b. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-term debt?
million
If Connie's Bistro did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year?
million
Current Portion of Long-Term Debt
PepsiCo, Inc., reported the following information about its long-term debt in the notes to a recent financial statement (in millions):
Long-term debt is comprised of the following:
December 31
Current Year
Preceding Year
Total long term-debt
$32,248
$37,816
Less current portion
(3,953)
(4,020)
Long-term debt
$28,295
$33,796
Enter your answers in millions.
a. How much of the long-term debt was disclosed as a current liability on the current year's December 31 balance sheet?$
b. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-term debt?$
c. If PepsiCo did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year?$
Chapter 10 Solutions
Financial and Managerial Accounting
Ch. 10 - Does a discounted note payable provide credit...Ch. 10 - Employees are subject to taxes withheld from their...Ch. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - Prob. 6DQCh. 10 - Prob. 7DQCh. 10 - Installment notes require equal periodic payments....Ch. 10 - Prob. 9DQCh. 10 - Prob. 10DQ
Ch. 10 - On January 26, Nyree Co. borrowed cash from Conrad...Ch. 10 - Prob. 2BECh. 10 - The payroll register of Heritage Co. indicates...Ch. 10 - Prob. 4BECh. 10 - Prob. 5BECh. 10 - Journalizing installment notes On the first day of...Ch. 10 - Estimated warranty liability Quantas Industries...Ch. 10 - Adieu Company reported the following current...Ch. 10 - Bon Nebo Co. sold 30,000 annual subscriptions of...Ch. 10 - Entries for notes payable Bennett Enterprises...Ch. 10 - Evaluating alternative notes A borrower has two...Ch. 10 - A business issued a 120-day, 5% note for 60,000 to...Ch. 10 - A business issued a 60-day note for 60,000 to a...Ch. 10 - Fixed asset purchases with note On June 30,...Ch. 10 - Prob. 7ECh. 10 - An employee earns 30 per hour and 1.5 times that...Ch. 10 - Prob. 9ECh. 10 - Summary payroll data In the following summary of...Ch. 10 - According to a summary of the payroll of Mountain...Ch. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Prob. 14ECh. 10 - Prob. 15ECh. 10 - Prob. 16ECh. 10 - Prob. 17ECh. 10 - Prob. 18ECh. 10 - Entries for installment note transactions On the...Ch. 10 - Entries for installment note transactions On...Ch. 10 - Prob. 21ECh. 10 - Prob. 22ECh. 10 - Prob. 23ECh. 10 - Prob. 24ECh. 10 - The following items were selected from among the...Ch. 10 - Entries for payroll and payroll taxes The...Ch. 10 - Ehrlich Co. began business on January 2. Salaries...Ch. 10 - Prob. 4PACh. 10 - Payroll accounts and year-end entries The...Ch. 10 - Liability transactions The following items were...Ch. 10 - Entries for payroll and payroll taxes The...Ch. 10 - Wage and tax statement data and employer FICA tax...Ch. 10 - Prob. 4PBCh. 10 - Payroll accounts and year-end entries The...Ch. 10 - Prob. 1COMPCh. 10 - Amazon.com, Inc. (AMZN) is one of the largest...Ch. 10 - Prob. 2MADCh. 10 - Prob. 3MADCh. 10 - Neiman Marcus Group (NMG) is one of the largest...Ch. 10 - Prob. 5MADCh. 10 - Prob. 1TIFCh. 10 - Prob. 2TIFCh. 10 - Communication WBM Motorworks is a manufacturer of...Ch. 10 - Prob. 5TIF
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- Current portion of long-term debt Connie's Bistro, Inc. reported the following information about its long-term debt in the notes to a recent financial statement (in millions): Long-term debt consists of the following: Total long term-debt Current portion December 31 December 31 Current Year Preceding Year $669,200 (194,100) $475,100 $368,100 (180,700) $187,400 Long-term debt a. How much of the long-term debt was disclosed as a current liability on the current year's December 31 balance sheet? million b. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-term debt? million ( c. If Connie's Bistro did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year? millionarrow_forwardCurrent portion of long-term debt Connie's Bistro, Inc. reported the following information about its long-term debt in the notes to a recent financial statement (in millions): Long-term debt consists of the following: December 31 December 31 Current Year Preceding Year Total long term-debt $784,700 $431,600 Current portion (227,600) (211,900) Long-term debt $557,100 $219,700 a. How much of the long-term debt was disclosed as a current liability on the current year's December 31 balance sheet? million b. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-term debt? million Increase c. If Connie's Bistro did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year? millionarrow_forwardCurrent portion of long-term debtarrow_forward
- PepsiCo, Inc., reported the following information about its long-term debt in the notes to a recent financial statement (in millions): Long-term debt is comprised of the following: December 31 Previous Year Current Year Total long term-debt Less current portion $33,284 $28,897 (4,071) (5,076) $29,213 $23,821 Long-term debt a. How much of the long-term debt was disclosed as a current liability on the current year's December 31 balance sheet? b. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-term debt? c. If PepsiCo did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year?arrow_forwardThe Cidros reported the following information on long-term debt: Current year Previous year Total long-term debts $14,578 millions $18,564 millions Minus the current portion (1,290) millions (1,540) millions Long-term debts 13,288 millions 17,024 millions Determine how much total current liabilities changed between the previous year and the current year as a result of the long-term debt portion. Explain your answer.Indicates the balance of the debt the following year if The Cidros does not acquire another long-term debt in the next few years.arrow_forwardplease answer do not image formatarrow_forward
- Current Portion of Long-Term Debt Connie's Bistro, Inc. reported the following information about its long-term debt in the notes to a recent financial statement (in millions): Long-term debt consists of the following: December 31 Current Preceding Year Year Total long-term debt $667,600 $367,200 Less current portion (193,600) (180,300) Long-term debt $474,000 $186,900 a. How much of the long-term debt wasHisclosed as a current liability on the current year's December 31 balance sheet? b. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-term debt? c. If Connie's Bistro did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year?arrow_forwardCurrent Portion of Long-Term Debt PepsiCo, Inc., reported the following information about its long-term debt in the notes to a recent financial statement (in millions): Long-term debt is composed of the following: December 31 Current Year Preceding Year Total long term-debt $27,917 $26,557 Current portion (4,096) (2,224) Long-term debt $23,821 $24,333 If PepsiCo did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year?arrow_forwardPreparing a Debt Disclosure As of December 31 of Year 1, Dole Company's long-term debt consisted of the following: • $114,300-Unsecured note payable to bank due Year 2. • $405,000 -Unsecured note payable to bank due Year 4. • $540,000 --Unsecured note payable to bank due Year 6. • $81,000-Secured mortgage payable to bank due in equal installments in Year 2 through Year 6. . • $144,000-Secured note payable to bank due in Year 7. Prepare the required financial statement disclosure at December 31 of Year 1, indicating the amounts due in each of the next five years and thereafter. Note Payable Year 3 Year 4 Year 5 Year 6 Year 2 114,300 $ 0 ✓ 0✔ 40,500 * 0 ✓ 154,800 $ Total $114,300 $ 405,000 540,000 81,000 144,000 $ 0✔ $ 0✔ 0✔ 0 x 0✔ 0 $ 0✔ $ 405,000 ✓ 0 ✓ 0 x 0 ✓ 405,000 $ 0✔ $ 0✔ 0 ✓ 0 x 0 ✓ 0 $ 0✔ $ 0✔ 540,000 ✓ 40,500 x 0 ✓ 580,500 $ Thereafter 0✓ 0✔ 0 ✓ 0 ✓ 144,000 ✓ 144,000arrow_forward
- PepsiCo, Inc., reported the following information about its long-term debt in the notes to a recent financial statement (in millions): Long-term debt is comprised of the following: December 31 Current Year Preceding Year Total long term-debt $33,284 $28,897 Less current portion (4,071) (5,076) Long-term debt $29,213 $23,821 a. How much of the long-term debt was disclosed as a current liability on the current year's December 31 balance sheet? b. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-term debt? c. If PepsiCo did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year?arrow_forwardRetirement of Debt Moore Company is preparing its statement of cash flows for the current year. During the year, the company retired two issuances of debt and properly recorded the transactions. These transactions were as follows: Paid cash of $14,400 to retire bonds payable with a face value of $17,000 and a book value of $15,000. Paid cash of $40,000 to retire bonds payable with a face value of $37,000 and a book value of $39,000. Required: Record, in journal entry form, the entries that Moore would make for the preceding transactions on its spreadsheet to prepare its statement of cash flows. If an amount box does not rectire an entry, leave it blankarrow_forwardLiabilities on the Balance Sheet For each of the following situations, indicate the amount shown as current or long-term liability on the balance sheet of Anchor, Inc., at December 31: a. Anchor's general ledger shows a credit balance of $125,000 in Long-Term Notes Payable. Of the amount, a $25,000 installment becomes due on June 30 of the following year. b. Anchor estimates its unpaid income tax liability for the current year is $34,000; it plans to pay this amount in March of the following year. c. On December 31, Anchor received a $15,000 invoice for merchandise shipped on December 28. The merchandise has not yet been received. The merchandise was shipped F.O.B. shipping point. d. During the year, Anchor collected $10,500 of state sales tax. At year-end, it has not yet remitted $1,400 of these taxes to the state department of revenue. e. On December 31, Anchor's bank approved a $5,000, 90-day loan. Anchor plans to sign the note and receive the money on January 2 of the following…arrow_forward
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