As of December 31 of the current year, Petersen Corporation has prepared the following information regarding its
Question:
As of December 31 of the current year, Petersen Corporation has prepared the following information regarding its liabilities and other obligations.
Instructions.
a. Prepare a listing of the Petersen Corporation’s current and long-term liabilities as they should be presented in the company’s December 31 balance sheet.
b. Briefly explain why you have excluded any of the listed items in your listing of current and long-term liabilities.
Notes payable, of which $12,000 will be repaid within the next 12 months...... Interest expense that will result from existing liabilities over the next 12 months..... Lawsuit pending against Petersen, in which $600,000 is claimed in damages. Legal counsel can make no reasonable estimate of the company's ultimate liability at this time.... 20-year bond issue that matures in two years. The entire amount will be repaid from a bond sinking fund. . . . . . . Accrued interest on the 20-year bond issue as of the balance sheet date.... Three-year commitment to John Hoskins as chief financial officer at a salary of $275,000 per year.. Note payable due within 90 days (but that is approved to be extended for an additional 18 months)...... Cash deposits from customers for goods and services to be delivered over the next nine months.... Income taxes, of which $100,000 are currently payable and the remainder deferred indefinitely...... $ 80,000 125,000 600,000 900,000 36,000 825,000 75,000 300,000 185,000
Step by Step Answer:
a Liabilities Current liabilities Unearned revenues 300000 Income taxes payable ...View the full answer
Financial And Managerial Accounting The Basis For Business Decisions
ISBN: 9781260247930
19th Edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Related Video
Days payable outstanding is an efficiency ratio that measures the average number of days a company takes to pay its suppliers. The video shows how to effectively calculate days Payable outstanding.
Students also viewed these Business questions
-
As of December 31 of the current year, Alexander Company has prepared the following information regarding its liabilities and other obligations: Notes payable, of which $27,000 will be repaid within...
-
As of December 31 of the current year, Alexander Company has prepared the following information regarding its liabilities and other obligations. Instructions a . Prepare a listing of Alexanders...
-
Assume that the first six months of 2021 have passed, and the Board requested that their accountant prepare an income statement for the first six months of 2021 showing how actual performance...
-
1 points Question 11 Your 91-year-old great-aunt has terminal cancer. You and shehave had many conversations regarding what she would want done ifshe were incapacitated and could not make choices...
-
Prove that (1/2) = . [Consider E(Z 2 ), where Z is a standard normal random variable.]
-
A third brother, Rex Carr, owns a junk yard. Rex can use one of two methods to destroy cars. The first involves purchasing a hydraulic car smasher that costs $200 a year to own and then spending $1...
-
The top left portion of Figure P27.35 shows a currentcarrying wire shaped into a rectangular loop that is very flexible. The loop is mounted on a base (not shown) that allows it to spin in any...
-
Billy Brown, owner of Billys Ice Cream On-the-Go, is investigating purchasing a new delivery van that would contain a custom-built refrigeration unit. The van would cost $90,000, have an eight year...
-
Question 11pts The APRN unit director is working at an agency that has a high incidence of medication errors, specifically with heparin. One recent error had a patient receive twice the prescribed...
-
The mean monthly rent of students at Oxnard University is $875 with a standard deviation of $219. (a) John's rent is $1,325. What is his standardized z-score? (b) Is John's rent an outlier? (c) How...
-
On March 31, 2021, Gardner Corporation received authorization to issue $50,000 of 9 percent, 30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue was dated...
-
Xonic Corporation issued $8 million of 20-year, 8 percent bonds on April 1, 2021, at 102. Interest is paid on March 31 and September 30 of each year, and all of the bonds in the issue mature on March...
-
What is behavioural targeting, and how is it applied in online marketing communications programs?
-
What is impact of income segregation? Explain briefly
-
Sarah is having difficulties with his family . Her family does not approve of her partner Tina, and they have threatened to challenge any estate planning mechanism he uses which would give Sarah...
-
Mr . Scott Savage has been employed for many years by a CCPC . In 2 0 1 9 , Mr . Savage was granted stock options to acquire 4 , 0 0 0 shares of his employer for $ 5 4 per share. At that time, the...
-
COKE Inc. has the revenues of $5,562 million, net income of $189 million, total assets of $3,445 million, and total equity of $711 million on its latest financial statements. Compute its net profit...
-
Today, you loaned $500,000at aninterest rate of 4.25% per year. If the borrower makes 15annual payments of equal amounts to repay the loan, what amount should you expect to receive from the borrower...
-
The Luh Company's 2014 cash flow statement appears below, in its functional currency. New Taiwan dollars (NT$) Additional information: 1. Exchange rates: January 1, 2014: $0.042/NT$; December 31,...
-
Which of the following statements is false? a. Capital leases are not commonly reported in a Capital Projects Fund. b. A governmental entity may report a Capital Project Fund in one year but not the...
-
Distinguish between corporations and sole proprietorships in terms of the following characteristics: a. Owners liability for debts of the business. b. Transferability of ownership interest. c....
-
Distinguish between corporations and sole proprietorships in terms of the following characteristics: a. Owners liability for debts of the business. b. Transferability of ownership interest. c....
-
Distinguish between corporations and sole proprietorships in terms of the following characteristics: a. Owners liability for debts of the business. b. Transferability of ownership interest. c....
-
what is silicone Eco flex and how is it used in soft robotics?
-
Two carts were given the same amount of energy at the start with cart A being half the weight of cart, B what would the resulting speed be of the two carts?
-
A ball is rolled for a total time of 4 seconds. Assuming the ball started from rest and accelerated at a constant rate of 1.4 m/s2, How far did the ball travel in 4 seconds
Study smarter with the SolutionInn App