Professional Simulation In this simulation, you are asked to address questions related to the accounting for non-current
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Professional Simulation In this simulation, you are asked to address questions related to the accounting for non-current liabilities.
Prepare responses to all parts.
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KWW Professional Simulation Non-Current Liabilities Time Remaining 4 hours 30 minutes Directions Situation Joumal Entry Analysis Financial Statements Resources E QDX Balzac Inc. has been producing quality children's apparel for more than 25 years. The company's fiscal year runs from April 1 to March 31. The following information relates to the obligations of Balzac as of March 31, 2015. Bonds Payable Balzac issued 5,000,000 of 11% bonds on April 1, 2014. Market interest rates on that date for bonds of similar risk were 10%. Bonds mature on April 1, 2024; interest is paid annually on April 1. Notes Payable Balzac has signed several long-term notes with financial institutions and insurance companies. The maturities of these notes are given in the schedule below. The total unpaid interest for all of these notes amounts to 210,000 on March 31, 2015. Due Date April 1, 2015 July 1, 2015 Amount Due 200,000 300,000 October 1, 2015 150,000 January 1, 2016 150,000 April 1, 2016-March 31, 2017 600,000 April 1, 2017-March 31, 2018 500,000 1,900,000 Environmental Liability Balzac purchased a warehouse in 2010 for 300,000. In February 2015, due to the passage of a new wetlands restoration law, Balzac will be required to restore the wetlands surrounding the warehouse site when the warehouse is abandoned in 2019. Balzac has estimated that the present value of the cost to restore the site is 35,000. Directions Situation Joumal Enity Analyse Financial Statements Resources Prepare the journal entry for the issuance of the bonds and on the first interest payment date. Directions Stuation Joumal Entry Analysis Financial Statements Resources Use a spreadsheet to prepare an amortization schedule for the bonds. Directions Joumal Entry Analysis Financial Statements Resources Prepare the non-current liabilities section of the statement of financial position and appropriate notes to the financial statements for Balzac Inc. as of March 31, 2015. >
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Related Book For
Intermediate Accounting IFRS Edition
ISBN: 9781118443965
2nd Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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