Concept – When Long-term Liability Recognized as Current?
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
When is a long-term liability recognized as a current liability?
When is a long-term liability recognized as a current liability?
All fall under current liability EXCEPT:
What are the appropriate journal entries for a farm equipment company’s liabilities involving: 1) a prepayment for a tractor to be delivered later, 2) refundable deposits for equipment part transportation containers, and 3) credit sales subject to state and local sales taxes? Given the information regarding their liabilities for the year… prepare several journal entries for the transactions.
Your numbers will vary.
Given the bond amount and percent of two separate bonds along with the amount and percent of a separate note … classify the liabilities as either current or noncurrent.
Your numbers will vary.
Given the estimated cost they will have from a product recall… determine how the loss should be recorded along with preparing a journal entry.
Your numbers will vary.
Given the financial statements for the year… prepare them under the U.S. GAAP.
Your numbers will vary.
Given the amount of cash borrowed, a non-interest-bearing note, and discount rate… find the interest expense.
Your numbers will vary.
Given the amount borrowed, the term, and the discount rate… find the effective interest rate.
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Given notes payable, and the amount expected to refinance… find what should be on the balance sheet.
Your numbers will vary.
Given the amount of weeks employees get of vacation time, how much they get paid for those weeks, and the number of employees… find how much should be reported for compensated absences.
Your numbers will vary.