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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Chapter 15 Homework 13 Saved Help Save & Exit Submit Part 1 of 2 0.83 points eBook Ask Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,800 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 49,000 24,400 73,400 9,420 $ 82,820 c. Time tickets show the following labor used for the month. Print References Job 201 $ 40,000 Job 202 13,400 Total direct labor 53,400 25,000 $ 78,400 Indirect labor Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $166,160 on credit. g. Incurred the following actual other…

quesrion 2

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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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