Identify Whether Obligations Are Current Liabilities

Identify Whether Obligations Are Current Liabilitieslo1clinton

Identify whether obligations are current liabilities. (LO 1), C Linton Company has these obligations at December 31: (a) a note payable for $100,000 due in 2 years, (b) a 10-year mortgage payable of $200,000 payable in ten $20,000 annual payments, (c) interest payable of $15,000 on the mortgage, and (d) accounts payable of $60,000. For each obligation, indicate whether it should be classified as a current liability, noncurrent liability, or both.

Compute sales taxes payable and make the entry to record sales taxes payable and sales. (LO 3), AP Bluestem Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $10,388. All sales are subject to a 6% sales tax.

Give the entry to record (a) the sale of the season tickets and (b) the revenue recognized after playing the first home game for AP Washburn University selling 3,500 season basketball tickets at $80 each for its 10-game schedule.

Prepare journal entries for bonds issued at face value. (LO 5), AP Rooney Corporation issued 3,000 bonds at 7%, 5-year, $1,000 each, on January 1, 2014, interest payable each January 1. Prepare the entry to record bond issuance, interest expense for 2014, and interest payment on January 1, 2015.

Prepare liabilities section of balance sheet. (LO 7), AP For Desmond Inc., prepare the liabilities section at December 31, 2014, considering items like accounts payable, notes payable, bonds payable, unearned rent revenue, and others provided.

Record interest-bearing notes. (LO 2), AP On May 15, Criqui Outback Clothiers borrowed on a 4-month, 8% note with interest owed of $480. Determine the principal borrowed and interest rate if amount was $18,500 and interest owed was $555. Prepare journal entries for initial borrowing and repayment.

Record journal entries for interest-bearing notes. (LO 2), AP On June 1, Fancher Company Ltd. borrows $60,000 on an 8%, 6-month note. Prepare entries on June 1, June 30, and December 1, assuming monthly interest accruals are made.

Journalize payroll entries. (LO 3), AP During March, wages earned were $64,000 with various withholdings and taxes. Prepare journal entries for wages expense and related liabilities, including payroll taxes.

Record unearned revenue transactions. (LO 3), AP Wildcats season tickets worth $1,728,000 include 16 games. Recognize revenue as games are played, and determine total tickets sold and number of games played by October's end. Make initial and subsequent revenue recognition entries.

Prepare journal entries for issuance of bonds and interest. (LO 5), AP Ortega issued $600,000 bonds at 7% on August 1, 2014, payable annually, with year-end December 31. Prepare entries on issuance, interest accrual, and payment.

Prepare journal entries for bond issuance and interest. (LO 5), AP On January 1, Newkirk issued $300,000 bonds at 8%, interest payable annually. Prepare entries at issuance, December 31 accrual, and January 1 payment.

Report bond transactions from recent market reports. (LO 5), AN Cite advantages and disadvantages of corporate form based on recent bond issues by GE and Boeing.

State advantages and disadvantages of a corporation. (LO 1), K Andrea Hanlin plans to start a business; identify key benefits and drawbacks of incorporating.

Journalize issuance of par value common stock. (LO 2), AP On May 10, Paige issued 2,500 shares of $5 par stock at $13 per share. Prepare the journal entry.

Record dividends. (LO 5), AP Troutman declared a $1 per share dividend on 7,000 shares, record on declaration date and payment date.

Compare effects of dividends and stock splits. (LO 5), K Indicate whether each transaction affects total assets, liabilities, or stockholders' equity positively, negatively, or not at all.

Journalize issuance of common stock. (LO 2), AP Rosa issued shares in two transactions: Jan. 10 at $5 per share, July 1 at $7 per share. Prepare entries assuming par and no-par stock with a stated value.

Journalize preferred stock transactions and presentation. (LO 4,7), AP Meranda issued preferred stock, and post to equity accounts. Discuss how these are presented in financial statements.

Correct stock transaction entries. (LO 2,3,4), AN Review and correct given errors in previous stock-related journal entries based on described transactions.

Compare effects of stock dividend and stock split. (LO 5), AP Pele considers declaring a 5% stock dividend versus a 2-for-1 stock split, with market price of $17. Prepare effects on equity and shares outstanding under each scenario.

Present statement of cash flows items. (LO 2), K Identify proper presentation of transactions such as bond issuance, equipment purchase, land sale, and dividends paid in cash flow statement.

Classify cash flow items. (LO 2), C Classify each cash transaction as operating, investing, or financing activity for various examples like equipment purchase, sale of building, bond redemption, etc.

Calculate net cash from operating activities. (LO 4), AP Use indirect method with net income and adjustments to determine cash flows for Manuel, Inc.

Determine cash received from sale of equipment. (LO 4), AN Based on equipment accounts, determine cash received from sale considering disposals and acquisitions.

Classify transactions by activity. (LO 2), C Analyze Putnam Corp.'s 2014 transactions, categorizing into operating, investing, and financing activities.

Prepare operating section of cash flows—indirect method. (LO 4), AP Use balance sheet data, net income, and adjustments for Sanford Inc. to prepare net cash from operating activities.

Analyze and prepare a partial cash flow statement—indirect method. (LO 4), AN Use ledger accounts and loss on disposal to prepare cash flow sections.

Prepare a discontinued operations section of an income statement. (LO 2), AP Disclose the Mexico operations' disposal loss, tax effects, and classify as discontinued operations.

Correct and prepare an income statement with an extraordinary item. (LO 2), AP Adjust prior errors and report flood loss as an extraordinary item with tax effects.

Discuss change in accounting principle reporting. (LO 2), C Explain how switching from LIFO to FIFO affects financial statements and disclosure requirements.

Calculate percentage changes in net income. (LO 4), AP Use prior years' net income data to compute percentage increases or decreases.

Analyze change in net income over years. (LO 4), AP Use horizontal analysis data to interpret trends in sales, COGS, and expenses.