Liabilities: The liabilities are referred as a company’s financial obligation; arise during the course of the business cycle, which will be settled by the outflow of resources. Whenever any transaction raises the amount of liability, the liability account will be credited. To explain: The long-term liabilities and its three examples.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 15, Problem 1Q

(a)

To determine

Liabilities: The liabilities are referred as a company’s financial obligation; arise during the course of the business cycle, which will be settled by the outflow of resources. Whenever any transaction raises the amount of liability, the liability account will be credited.

To explain: The long-term liabilities and its three examples.

(a)

Expert Solution

Explanation of Solution

Long-term liabilities are the liabilities of the company which can be converted into cash after the duration of twelve months. Long-term liabilities define the long-term perspective or goals of the company.

Examples of the long-term liabilities are as follows:

Bonds payable.
Loan payable.
Deferred tax liabilities.

Notes:

Bonds payable: Bond is a debt instrument of the company which issued at the time when the company requires more fund. Bonds payable is the long-term liability of the company because the repayment of the bonds cannot be made within the period of 12 months.

Loan payable: The company can borrow the money from the bank in the form of a business loan or another. These all kind of loans shows the long-term liabilities of the company.

Deferred tax liability: Deferred tax liability shows the provision made by the company for the payment of tax.

Conclusion

Long-term liabilities refer the liabilities which can be paid off after the duration of twelve months. Bonds payable, loans payable and deferred tax liabilities are the examples of long-term liabilities.

(b)

To determine

To explain: The bonds.

(b)

Expert Solution

Answer to Problem 1Q

Solution:

Bond is a debt instrument of the company which issued at the time when the company requires more funds.

Explanation of Solution

The company has various sources of finance such as a loan from a bank, issuance of bonds or debentures.
There are the various types of bonds such as secured and unsecured bonds, term and serial bond, registered and bearer bonds and convertible and callable bonds.

Conclusion

Bond is a type of debt which is issued by the company which facilitates the requirement of funds in the company.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Covered member’s independence is impaired with respect to an attest client. What is a covered member for a CPA? What are the sources of liability for an auditor who violates the rules of professional conduct in an audit engagement?

Monty Inc., a major retailer of high-end office furniture, operates several stores and is a publicly traded company. The company is currently preparing its statement of cash flows. The comparative statement of financial position and income stetement for Monty as at May 31, 2020, are as The rollowing is additional Informacon soous transectons cunne tie year shoes may sa, coat for Monty ancy which tohows arks. Plant assets costing $69,000 were purchased by paying $47,000 in cash and issuing 5,000 common shares. In order to supplement is casn, Monty Issued ,000 edditone common snares. Cash dividends of $35,000 were declared and paid at the end of the fiscal year create cashflow direct method statement

Bonita Industries reports the following ledger account balances at June 30, 2025: Cash $1158 Accounts receivable 2838 Inventory 3384 Prepaid rent 104 Equipment 320 Accumulated depreciation-equipment 66 Accounts payable 920 Unearned rent revenue 144 Common stock 220 Retained earnings 6740 Service revenue 392 Interest revenue 80 Salaries and wages expense 200 Insurance expense 98 Assuming that all of the accounts have normal balances, what are total credits on the company's trial balance at June 30, 2025? A. $8562. B. $8586. C. $8496. D. $8482.

Answer 2

Question

Chapter 15, Problem 1Q

(a)

To determine

Liabilities: The liabilities are referred as a company’s financial obligation; arise during the course of the business cycle, which will be settled by the outflow of resources. Whenever any transaction raises the amount of liability, the liability account will be credited.

To explain: The long-term liabilities and its three examples.

(a)

Expert Solution

Explanation of Solution

Long-term liabilities are the liabilities of the company which can be converted into cash after the duration of twelve months. Long-term liabilities define the long-term perspective or goals of the company.

Examples of the long-term liabilities are as follows:

Bonds payable.
Loan payable.
Deferred tax liabilities.

Notes:

Bonds payable: Bond is a debt instrument of the company which issued at the time when the company requires more fund. Bonds payable is the long-term liability of the company because the repayment of the bonds cannot be made within the period of 12 months.

Loan payable: The company can borrow the money from the bank in the form of a business loan or another. These all kind of loans shows the long-term liabilities of the company.

Deferred tax liability: Deferred tax liability shows the provision made by the company for the payment of tax.

Conclusion

Long-term liabilities refer the liabilities which can be paid off after the duration of twelve months. Bonds payable, loans payable and deferred tax liabilities are the examples of long-term liabilities.

(b)

To determine

To explain: The bonds.

(b)

Expert Solution

Answer to Problem 1Q

Solution:

Bond is a debt instrument of the company which issued at the time when the company requires more funds.

Explanation of Solution

The company has various sources of finance such as a loan from a bank, issuance of bonds or debentures.
There are the various types of bonds such as secured and unsecured bonds, term and serial bond, registered and bearer bonds and convertible and callable bonds.

Conclusion

Bond is a type of debt which is issued by the company which facilitates the requirement of funds in the company.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 15, Problem 1Q

(a)

To determine

Liabilities: The liabilities are referred as a company’s financial obligation; arise during the course of the business cycle, which will be settled by the outflow of resources. Whenever any transaction raises the amount of liability, the liability account will be credited.

To explain: The long-term liabilities and its three examples.

(a)

Expert Solution

Explanation of Solution

Long-term liabilities are the liabilities of the company which can be converted into cash after the duration of twelve months. Long-term liabilities define the long-term perspective or goals of the company.

Examples of the long-term liabilities are as follows:

Bonds payable.
Loan payable.
Deferred tax liabilities.

Notes:

Bonds payable: Bond is a debt instrument of the company which issued at the time when the company requires more fund. Bonds payable is the long-term liability of the company because the repayment of the bonds cannot be made within the period of 12 months.

Loan payable: The company can borrow the money from the bank in the form of a business loan or another. These all kind of loans shows the long-term liabilities of the company.

Deferred tax liability: Deferred tax liability shows the provision made by the company for the payment of tax.

Conclusion

Long-term liabilities refer the liabilities which can be paid off after the duration of twelve months. Bonds payable, loans payable and deferred tax liabilities are the examples of long-term liabilities.

(b)

To determine

To explain: The bonds.

(b)

Expert Solution

Answer to Problem 1Q

Solution:

Bond is a debt instrument of the company which issued at the time when the company requires more funds.

Explanation of Solution

The company has various sources of finance such as a loan from a bank, issuance of bonds or debentures.
There are the various types of bonds such as secured and unsecured bonds, term and serial bond, registered and bearer bonds and convertible and callable bonds.

Conclusion

Bond is a type of debt which is issued by the company which facilitates the requirement of funds in the company.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 15, Problem 1Q

(a)

To determine

Liabilities: The liabilities are referred as a company’s financial obligation; arise during the course of the business cycle, which will be settled by the outflow of resources. Whenever any transaction raises the amount of liability, the liability account will be credited.

To explain: The long-term liabilities and its three examples.

(a)

Expert Solution

Explanation of Solution

Long-term liabilities are the liabilities of the company which can be converted into cash after the duration of twelve months. Long-term liabilities define the long-term perspective or goals of the company.

Examples of the long-term liabilities are as follows:

Bonds payable.
Loan payable.
Deferred tax liabilities.

Notes:

Bonds payable: Bond is a debt instrument of the company which issued at the time when the company requires more fund. Bonds payable is the long-term liability of the company because the repayment of the bonds cannot be made within the period of 12 months.

Loan payable: The company can borrow the money from the bank in the form of a business loan or another. These all kind of loans shows the long-term liabilities of the company.

Deferred tax liability: Deferred tax liability shows the provision made by the company for the payment of tax.

Conclusion

Long-term liabilities refer the liabilities which can be paid off after the duration of twelve months. Bonds payable, loans payable and deferred tax liabilities are the examples of long-term liabilities.

(b)

To determine

To explain: The bonds.

(b)

Expert Solution

Answer to Problem 1Q

Solution:

Bond is a debt instrument of the company which issued at the time when the company requires more funds.

Explanation of Solution

The company has various sources of finance such as a loan from a bank, issuance of bonds or debentures.
There are the various types of bonds such as secured and unsecured bonds, term and serial bond, registered and bearer bonds and convertible and callable bonds.

Conclusion

Bond is a type of debt which is issued by the company which facilitates the requirement of funds in the company.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 15, Problem 1Q

(a)

To determine

Liabilities: The liabilities are referred as a company’s financial obligation; arise during the course of the business cycle, which will be settled by the outflow of resources. Whenever any transaction raises the amount of liability, the liability account will be credited.

To explain: The long-term liabilities and its three examples.

(a)

Expert Solution

Explanation of Solution

Long-term liabilities are the liabilities of the company which can be converted into cash after the duration of twelve months. Long-term liabilities define the long-term perspective or goals of the company.

Examples of the long-term liabilities are as follows:

Bonds payable.
Loan payable.
Deferred tax liabilities.

Notes:

Bonds payable: Bond is a debt instrument of the company which issued at the time when the company requires more fund. Bonds payable is the long-term liability of the company because the repayment of the bonds cannot be made within the period of 12 months.

Loan payable: The company can borrow the money from the bank in the form of a business loan or another. These all kind of loans shows the long-term liabilities of the company.

Deferred tax liability: Deferred tax liability shows the provision made by the company for the payment of tax.

Conclusion

Long-term liabilities refer the liabilities which can be paid off after the duration of twelve months. Bonds payable, loans payable and deferred tax liabilities are the examples of long-term liabilities.

(b)

To determine

To explain: The bonds.

(b)

Expert Solution

Answer to Problem 1Q

Solution:

Bond is a debt instrument of the company which issued at the time when the company requires more funds.

Explanation of Solution

The company has various sources of finance such as a loan from a bank, issuance of bonds or debentures.
There are the various types of bonds such as secured and unsecured bonds, term and serial bond, registered and bearer bonds and convertible and callable bonds.

Conclusion

Bond is a type of debt which is issued by the company which facilitates the requirement of funds in the company.

Answer 6

Chapter 15, Problem 1Q

(a)

To determine

Liabilities: The liabilities are referred as a company’s financial obligation; arise during the course of the business cycle, which will be settled by the outflow of resources. Whenever any transaction raises the amount of liability, the liability account will be credited.

To explain: The long-term liabilities and its three examples.

(a)

Expert Solution

Explanation of Solution

Long-term liabilities are the liabilities of the company which can be converted into cash after the duration of twelve months. Long-term liabilities define the long-term perspective or goals of the company.

Examples of the long-term liabilities are as follows:

Bonds payable.
Loan payable.
Deferred tax liabilities.

Notes:

Bonds payable: Bond is a debt instrument of the company which issued at the time when the company requires more fund. Bonds payable is the long-term liability of the company because the repayment of the bonds cannot be made within the period of 12 months.

Loan payable: The company can borrow the money from the bank in the form of a business loan or another. These all kind of loans shows the long-term liabilities of the company.

Deferred tax liability: Deferred tax liability shows the provision made by the company for the payment of tax.

Conclusion

Long-term liabilities refer the liabilities which can be paid off after the duration of twelve months. Bonds payable, loans payable and deferred tax liabilities are the examples of long-term liabilities.

Answer 7

Chapter 15, Problem 1Q

(a)

To determine

Liabilities: The liabilities are referred as a company’s financial obligation; arise during the course of the business cycle, which will be settled by the outflow of resources. Whenever any transaction raises the amount of liability, the liability account will be credited.

To explain: The long-term liabilities and its three examples.

Answer 8

(a)

Expert Solution

Explanation of Solution

Long-term liabilities are the liabilities of the company which can be converted into cash after the duration of twelve months. Long-term liabilities define the long-term perspective or goals of the company.

Examples of the long-term liabilities are as follows:

Bonds payable.
Loan payable.
Deferred tax liabilities.

Notes:

Bonds payable: Bond is a debt instrument of the company which issued at the time when the company requires more fund. Bonds payable is the long-term liability of the company because the repayment of the bonds cannot be made within the period of 12 months.

Loan payable: The company can borrow the money from the bank in the form of a business loan or another. These all kind of loans shows the long-term liabilities of the company.

Deferred tax liability: Deferred tax liability shows the provision made by the company for the payment of tax.

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Conclusion

Long-term liabilities refer the liabilities which can be paid off after the duration of twelve months. Bonds payable, loans payable and deferred tax liabilities are the examples of long-term liabilities.

Answer 13

(b)

To determine

To explain: The bonds.

(b)

Expert Solution

Answer to Problem 1Q

Solution:

Bond is a debt instrument of the company which issued at the time when the company requires more funds.

Explanation of Solution

The company has various sources of finance such as a loan from a bank, issuance of bonds or debentures.
There are the various types of bonds such as secured and unsecured bonds, term and serial bond, registered and bearer bonds and convertible and callable bonds.

Conclusion

Bond is a type of debt which is issued by the company which facilitates the requirement of funds in the company.

Answer 14

(b)

To determine

To explain: The bonds.

Answer 15

(b)

Expert Solution

Answer to Problem 1Q

Solution:

Bond is a debt instrument of the company which issued at the time when the company requires more funds.

Answer 16

(b)

Expert Solution

Answer 17

(b)

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

The company has various sources of finance such as a loan from a bank, issuance of bonds or debentures.
There are the various types of bonds such as secured and unsecured bonds, term and serial bond, registered and bearer bonds and convertible and callable bonds.