Concept Introduction Current Liabilities: Current Liabilities are the debts or economic obligations that a company owes to its creditors and that have to be settled within one year or within its operating cycle, whichever period is longer. Operating Cycle: An operating cycle represents the average period of time that a company takes to acquire inventory, sell the inventory and collect cash from its customers for the inventory sold to them. To Find: The items that are normally classified as current liabilities for a company that has a 15-month operating cycle from the options given in the question. Given Info: The following items are given for classifying current liabilities (and non-current liabilities) for a company that has a 15-month operating cycle: Portion of long-term note due in 15 months. Note payable maturing in 2 years. Note payable due in 18 months. Note payable due in 11 months. FICA taxes payable. Salaries payable.

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Answer 1

Question

Chapter 11, Problem 1QS

To determine

Concept Introduction

Current Liabilities:

Current Liabilities are the debts or economic obligations that a company owes to its creditors and that have to be settled within one year or within its operating cycle, whichever period is longer.

Operating Cycle:

An operating cycle represents the average period of time that a company takes to acquire inventory, sell the inventory and collect cash from its customers for the inventory sold to them.

To Find:

The items that are normally classified as current liabilities for a company that has a 15-month operating cycle from the options given in the question.

Given Info:

The following items are given for classifying current liabilities (and non-current liabilities) for a company that has a 15-month operating cycle:

Portion of long-term note due in 15 months.

Note payable maturing in 2 years.

Note payable due in 18 months.

Note payable due in 11 months.

FICA taxes payable.

Salaries payable.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

The following items are normally classified as current liabilities for a company that has a 15-month operating cycle:

Portion of long-term note due in 15 months.
Note Payable due in 11 months.
FICA taxes payable.
Salaries payable.

The remaining items that are 'Note Payable maturing in 2 years' and 'Note Payable due in 18 months' are considered as non-current liabilities for a company that has a 15-month operating cycle.

Explanation of Solution

The classification of current and non-current liabilities for a company that has a 15-month operating cycle is explained as follows:

Portion of long-term note due in 15 months- This is a current liability because the portion of long-term note is getting due in 15 months which is within the company's 15-month operating cycle.
Note payable maturing in 2 years- This is not a current liability because note payable is maturing in 2 years and this is not within the company's 15-month operating cycle.
Note payable due in 18 months- This is not a current liability because note payable is getting due in 18 months and this is not within the company's 15-month operating cycle.
Note payable due in 11 months- This is a current liability because the note payable is getting due in 11 months which is within the company's 15-month operating cycle.
FICA taxes payable- FICA taxes payable is a current liability because a company has to pay FICA taxes to the federal government within few days i.e. within one year or within its operating cycle.
Salaries payable- Salaries payable is a current liability because salaries are typically payable by the company in less than one year.

Conclusion

A company's current liabilities have to be settled within one year or within its operating cycle, whichever period is longer. Therefore, a company that has a 15-month operating cycle should consider those items as current liabilities that have to be settled within 15 months.

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Problem No. 3 The business assets of Glea Yares and Eunice Alico appear below: Yares Alico Cash P 10,000 P 25,000 Accounts Receivable 245,000 565,000 Inventories 122,000 260,000 Land 664,000 Building 938,000 Furniture and Fixtures Total 87,000 P1,128,000 36,000 P1,824,000 000,00 000,000 19 000,008 Account Payable Notes Payable P 178,000 200,000 Yare, Capital diw 750,000 P 245,000 345,000 adi to omen Alicol, Capital Total P1,128,000 1,234,000 P1,824,000 On March 5, 2025, Yares and Alico agreed to form a partnership contributing their assets and equities subject to the following adjustments: qining arboj su to nam a. Accounts receivable of P15,000 in Yares' books and P30,000 in Alico's are uncollectible. b. Inventories of P5,500 and P6,500 are worthless in Yares' and Alico's respective books. Required: 1. In the books of Yares, prepare the necessary journal entries: a. To record the adjustments to Yares' assets b. To close the books of Yares of viande no 251qgque oroa snemu ni 2. In the…

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Answer 2

Question

Chapter 11, Problem 1QS

To determine

Concept Introduction

Current Liabilities:

Current Liabilities are the debts or economic obligations that a company owes to its creditors and that have to be settled within one year or within its operating cycle, whichever period is longer.

Operating Cycle:

An operating cycle represents the average period of time that a company takes to acquire inventory, sell the inventory and collect cash from its customers for the inventory sold to them.

To Find:

The items that are normally classified as current liabilities for a company that has a 15-month operating cycle from the options given in the question.

Given Info:

The following items are given for classifying current liabilities (and non-current liabilities) for a company that has a 15-month operating cycle:

Portion of long-term note due in 15 months.

Note payable maturing in 2 years.

Note payable due in 18 months.

Note payable due in 11 months.

FICA taxes payable.

Salaries payable.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

The following items are normally classified as current liabilities for a company that has a 15-month operating cycle:

Portion of long-term note due in 15 months.
Note Payable due in 11 months.
FICA taxes payable.
Salaries payable.

The remaining items that are 'Note Payable maturing in 2 years' and 'Note Payable due in 18 months' are considered as non-current liabilities for a company that has a 15-month operating cycle.

Explanation of Solution

The classification of current and non-current liabilities for a company that has a 15-month operating cycle is explained as follows:

Portion of long-term note due in 15 months- This is a current liability because the portion of long-term note is getting due in 15 months which is within the company's 15-month operating cycle.
Note payable maturing in 2 years- This is not a current liability because note payable is maturing in 2 years and this is not within the company's 15-month operating cycle.
Note payable due in 18 months- This is not a current liability because note payable is getting due in 18 months and this is not within the company's 15-month operating cycle.
Note payable due in 11 months- This is a current liability because the note payable is getting due in 11 months which is within the company's 15-month operating cycle.
FICA taxes payable- FICA taxes payable is a current liability because a company has to pay FICA taxes to the federal government within few days i.e. within one year or within its operating cycle.
Salaries payable- Salaries payable is a current liability because salaries are typically payable by the company in less than one year.

Conclusion

A company's current liabilities have to be settled within one year or within its operating cycle, whichever period is longer. Therefore, a company that has a 15-month operating cycle should consider those items as current liabilities that have to be settled within 15 months.

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Answer 3

Question

Chapter 11, Problem 1QS

To determine

Concept Introduction

Current Liabilities:

Current Liabilities are the debts or economic obligations that a company owes to its creditors and that have to be settled within one year or within its operating cycle, whichever period is longer.

Operating Cycle:

An operating cycle represents the average period of time that a company takes to acquire inventory, sell the inventory and collect cash from its customers for the inventory sold to them.

To Find:

The items that are normally classified as current liabilities for a company that has a 15-month operating cycle from the options given in the question.

Given Info:

The following items are given for classifying current liabilities (and non-current liabilities) for a company that has a 15-month operating cycle:

Portion of long-term note due in 15 months.

Note payable maturing in 2 years.

Note payable due in 18 months.

Note payable due in 11 months.

FICA taxes payable.

Salaries payable.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

The following items are normally classified as current liabilities for a company that has a 15-month operating cycle:

Portion of long-term note due in 15 months.
Note Payable due in 11 months.
FICA taxes payable.
Salaries payable.

The remaining items that are 'Note Payable maturing in 2 years' and 'Note Payable due in 18 months' are considered as non-current liabilities for a company that has a 15-month operating cycle.

Explanation of Solution

The classification of current and non-current liabilities for a company that has a 15-month operating cycle is explained as follows:

Portion of long-term note due in 15 months- This is a current liability because the portion of long-term note is getting due in 15 months which is within the company's 15-month operating cycle.
Note payable maturing in 2 years- This is not a current liability because note payable is maturing in 2 years and this is not within the company's 15-month operating cycle.
Note payable due in 18 months- This is not a current liability because note payable is getting due in 18 months and this is not within the company's 15-month operating cycle.
Note payable due in 11 months- This is a current liability because the note payable is getting due in 11 months which is within the company's 15-month operating cycle.
FICA taxes payable- FICA taxes payable is a current liability because a company has to pay FICA taxes to the federal government within few days i.e. within one year or within its operating cycle.
Salaries payable- Salaries payable is a current liability because salaries are typically payable by the company in less than one year.

Conclusion

A company's current liabilities have to be settled within one year or within its operating cycle, whichever period is longer. Therefore, a company that has a 15-month operating cycle should consider those items as current liabilities that have to be settled within 15 months.

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Answer 4

Question

Chapter 11, Problem 1QS

To determine

Concept Introduction

Current Liabilities:

Current Liabilities are the debts or economic obligations that a company owes to its creditors and that have to be settled within one year or within its operating cycle, whichever period is longer.

Operating Cycle:

An operating cycle represents the average period of time that a company takes to acquire inventory, sell the inventory and collect cash from its customers for the inventory sold to them.

To Find:

The items that are normally classified as current liabilities for a company that has a 15-month operating cycle from the options given in the question.

Given Info:

The following items are given for classifying current liabilities (and non-current liabilities) for a company that has a 15-month operating cycle:

Portion of long-term note due in 15 months.

Note payable maturing in 2 years.

Note payable due in 18 months.

Note payable due in 11 months.

FICA taxes payable.

Salaries payable.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

The following items are normally classified as current liabilities for a company that has a 15-month operating cycle:

Portion of long-term note due in 15 months.
Note Payable due in 11 months.
FICA taxes payable.
Salaries payable.

The remaining items that are 'Note Payable maturing in 2 years' and 'Note Payable due in 18 months' are considered as non-current liabilities for a company that has a 15-month operating cycle.

Explanation of Solution

The classification of current and non-current liabilities for a company that has a 15-month operating cycle is explained as follows:

Portion of long-term note due in 15 months- This is a current liability because the portion of long-term note is getting due in 15 months which is within the company's 15-month operating cycle.
Note payable maturing in 2 years- This is not a current liability because note payable is maturing in 2 years and this is not within the company's 15-month operating cycle.
Note payable due in 18 months- This is not a current liability because note payable is getting due in 18 months and this is not within the company's 15-month operating cycle.
Note payable due in 11 months- This is a current liability because the note payable is getting due in 11 months which is within the company's 15-month operating cycle.
FICA taxes payable- FICA taxes payable is a current liability because a company has to pay FICA taxes to the federal government within few days i.e. within one year or within its operating cycle.
Salaries payable- Salaries payable is a current liability because salaries are typically payable by the company in less than one year.

Conclusion

A company's current liabilities have to be settled within one year or within its operating cycle, whichever period is longer. Therefore, a company that has a 15-month operating cycle should consider those items as current liabilities that have to be settled within 15 months.

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Answer 5

Chapter 11, Problem 1QS

To determine

Concept Introduction

Current Liabilities:

Current Liabilities are the debts or economic obligations that a company owes to its creditors and that have to be settled within one year or within its operating cycle, whichever period is longer.

Operating Cycle:

An operating cycle represents the average period of time that a company takes to acquire inventory, sell the inventory and collect cash from its customers for the inventory sold to them.

To Find:

The items that are normally classified as current liabilities for a company that has a 15-month operating cycle from the options given in the question.

Given Info:

The following items are given for classifying current liabilities (and non-current liabilities) for a company that has a 15-month operating cycle:

Portion of long-term note due in 15 months.

Note payable maturing in 2 years.

Note payable due in 18 months.

Note payable due in 11 months.

FICA taxes payable.

Salaries payable.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

The following items are normally classified as current liabilities for a company that has a 15-month operating cycle:

Portion of long-term note due in 15 months.
Note Payable due in 11 months.
FICA taxes payable.
Salaries payable.

The remaining items that are 'Note Payable maturing in 2 years' and 'Note Payable due in 18 months' are considered as non-current liabilities for a company that has a 15-month operating cycle.

Explanation of Solution

The classification of current and non-current liabilities for a company that has a 15-month operating cycle is explained as follows:

Portion of long-term note due in 15 months- This is a current liability because the portion of long-term note is getting due in 15 months which is within the company's 15-month operating cycle.
Note payable maturing in 2 years- This is not a current liability because note payable is maturing in 2 years and this is not within the company's 15-month operating cycle.
Note payable due in 18 months- This is not a current liability because note payable is getting due in 18 months and this is not within the company's 15-month operating cycle.
Note payable due in 11 months- This is a current liability because the note payable is getting due in 11 months which is within the company's 15-month operating cycle.
FICA taxes payable- FICA taxes payable is a current liability because a company has to pay FICA taxes to the federal government within few days i.e. within one year or within its operating cycle.
Salaries payable- Salaries payable is a current liability because salaries are typically payable by the company in less than one year.

Conclusion

A company's current liabilities have to be settled within one year or within its operating cycle, whichever period is longer. Therefore, a company that has a 15-month operating cycle should consider those items as current liabilities that have to be settled within 15 months.

Answer 6

Chapter 11, Problem 1QS

To determine

Concept Introduction

Current Liabilities:

Current Liabilities are the debts or economic obligations that a company owes to its creditors and that have to be settled within one year or within its operating cycle, whichever period is longer.

Operating Cycle:

An operating cycle represents the average period of time that a company takes to acquire inventory, sell the inventory and collect cash from its customers for the inventory sold to them.

To Find:

The items that are normally classified as current liabilities for a company that has a 15-month operating cycle from the options given in the question.

Given Info:

The following items are given for classifying current liabilities (and non-current liabilities) for a company that has a 15-month operating cycle:

Portion of long-term note due in 15 months.

Note payable maturing in 2 years.

Note payable due in 18 months.

Note payable due in 11 months.

FICA taxes payable.

Salaries payable.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

The following items are normally classified as current liabilities for a company that has a 15-month operating cycle:

Portion of long-term note due in 15 months.
Note Payable due in 11 months.
FICA taxes payable.
Salaries payable.

The remaining items that are 'Note Payable maturing in 2 years' and 'Note Payable due in 18 months' are considered as non-current liabilities for a company that has a 15-month operating cycle.

Explanation of Solution

The classification of current and non-current liabilities for a company that has a 15-month operating cycle is explained as follows:

Portion of long-term note due in 15 months- This is a current liability because the portion of long-term note is getting due in 15 months which is within the company's 15-month operating cycle.
Note payable maturing in 2 years- This is not a current liability because note payable is maturing in 2 years and this is not within the company's 15-month operating cycle.
Note payable due in 18 months- This is not a current liability because note payable is getting due in 18 months and this is not within the company's 15-month operating cycle.
Note payable due in 11 months- This is a current liability because the note payable is getting due in 11 months which is within the company's 15-month operating cycle.
FICA taxes payable- FICA taxes payable is a current liability because a company has to pay FICA taxes to the federal government within few days i.e. within one year or within its operating cycle.
Salaries payable- Salaries payable is a current liability because salaries are typically payable by the company in less than one year.

Conclusion

A company's current liabilities have to be settled within one year or within its operating cycle, whichever period is longer. Therefore, a company that has a 15-month operating cycle should consider those items as current liabilities that have to be settled within 15 months.

Answer 7

Chapter 11, Problem 1QS

To determine

Concept Introduction

Current Liabilities:

Current Liabilities are the debts or economic obligations that a company owes to its creditors and that have to be settled within one year or within its operating cycle, whichever period is longer.

Operating Cycle:

An operating cycle represents the average period of time that a company takes to acquire inventory, sell the inventory and collect cash from its customers for the inventory sold to them.

To Find:

The items that are normally classified as current liabilities for a company that has a 15-month operating cycle from the options given in the question.

Given Info:

The following items are given for classifying current liabilities (and non-current liabilities) for a company that has a 15-month operating cycle:

Portion of long-term note due in 15 months.

Note payable maturing in 2 years.

Note payable due in 18 months.

Note payable due in 11 months.

FICA taxes payable.

Salaries payable.

Answer 8

Expert Solution & Answer

Answer to Problem 1QS

Solution:

The following items are normally classified as current liabilities for a company that has a 15-month operating cycle:

Portion of long-term note due in 15 months.
Note Payable due in 11 months.
FICA taxes payable.
Salaries payable.

The remaining items that are 'Note Payable maturing in 2 years' and 'Note Payable due in 18 months' are considered as non-current liabilities for a company that has a 15-month operating cycle.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

The classification of current and non-current liabilities for a company that has a 15-month operating cycle is explained as follows:

Portion of long-term note due in 15 months- This is a current liability because the portion of long-term note is getting due in 15 months which is within the company's 15-month operating cycle.
Note payable maturing in 2 years- This is not a current liability because note payable is maturing in 2 years and this is not within the company's 15-month operating cycle.
Note payable due in 18 months- This is not a current liability because note payable is getting due in 18 months and this is not within the company's 15-month operating cycle.
Note payable due in 11 months- This is a current liability because the note payable is getting due in 11 months which is within the company's 15-month operating cycle.
FICA taxes payable- FICA taxes payable is a current liability because a company has to pay FICA taxes to the federal government within few days i.e. within one year or within its operating cycle.
Salaries payable- Salaries payable is a current liability because salaries are typically payable by the company in less than one year.

Answer 12

Conclusion

A company's current liabilities have to be settled within one year or within its operating cycle, whichever period is longer. Therefore, a company that has a 15-month operating cycle should consider those items as current liabilities that have to be settled within 15 months.

Answer 13

Ch. 11 - Prob. 1QS Ch. 11 - Prob. 2QS Ch. 11 - Prob. 3QS Ch. 11 - QS 11-3 Unearned revenue C2 Ticketsales, Inc.,...Ch. 11 - Interest-bearing note transactions P1 On November...Ch. 11 - Prob. 6QS Ch. 11 - Prob. 7QS Ch. 11 - Prob. 8QS Ch. 11 - Prob. 9QS Ch. 11 - Prob. 10QS

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