By the end of year 2020 the Company Alphabet Inc., has prepared the required information to prepare
Question:
By the end of year 2020 the Company Alphabet Inc., has prepared the required information to prepare the balance sheet current and long term liabilities.
They have administrative staff in the company, but the accounting service is outsourced.
They are today in a process of selecting a new company to deliver the accounting services, so they are trying to find the best alternative. The have decided to give the information to different companies to see which is the best option.
The information below has been delivered to you and you are asked to prepare the liability side of the balance sheet as professionally as possible. You are also requested to explain everything you are doing, so they can understand clearly what you are doing.
Income taxes payable for 250.000€ of which 126.000 are due June 30th, the rest are deferred indefinitely.
Notes payable 558.000€, of which 30.000 are due June 30 2021
52.000 are due December 30 2021
125.698 are due June 2022
350.302 are due December 2022
Lawsuit pending from customer America Corp, as a quality claim from a product that was used in their process causing losses for 2.000.000. The company’s lawyer has not been able to estimate the probability that the company has to pay the claim, at this moment.
Cash deposits from customers for tailor-made specific products 95.000€ to be delivered 50% December 2021 and the remaining amount March 2021.
Accrued interest from a long term loan that is paid every 6 months, the next payment of 90.000€ is due march 30th2021.
Long term loan for 3.000.000€, the maturity of the principal has the following breakdown:
December 30 2021 1.000.000
December 30 2022 1.000.000
December 30 2023 1.000.000
Interest expense that will result from existing liabilities over the next 12 months for 200.000€
Expert Answer:
For classifying liabilities as Current or NonCurrent we use the subsequent classification Current li... View the full answer
