On December 1, 2021, your company borrowed $15,000, a portion of which is to be repaid each year on November 30. Specifically,your company will make the following principal payments: 2022, $2,000; 2023, $3,000; 2024, $4,000; and 2025, $6,000. Show howthis loan will be reported in the December 31, 2022 and 2021, balance sheets, assuming principal payments will be made whenrequired.Total LiabilitiesBalance Sheet (Partial)$As of December 3120222021004

Answer : On December 31,2021 $2000 of the loan will be presented as current liability because it is…

On December 1, 2021, your company borrowed $15,000, a portion your company will make the following principal payments: 2022, S this loan will be reported in the December 31, 2022 and 2021, bala required. Balance Sheet (Partial) As of December 31 2022 2021

On December 1, 2021, your company borrowed $15,000, a portion your company will make the following principal payments: 2022, S this loan will be reported in the December 31, 2022 and 2021, bala required. Balance Sheet (Partial) As of December 31 2022 2021

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

See similar textbooks

Related questions

Q: Nelter Corporation, which has only one product, has provided the following data concerning its most…

A: Variable Costing - In this costing method, variable costs are considered while preparing the cost of…

Q: You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner…

A: Company is needed capital to finance its assets. These assets would be considered either through…

Q: The following budgeted profit statement has been prepared using absorption costing principles. A…

A: Variable costs are those costs which changes along with change in activity level. Fixed costs are…

Q: 2018 2019 2020 2021 (a) 2018 $131.000 97,000 (306,000) 223.000 The tax rates listed were all enacted…

A: Deffered Tax Assets :— A deferred tax asset is an asset to the Company that usually arises when the…

Q: Which method should be used to account for a 16 % ownership in another company's voting stock ,…

A: Voting stock refers to the shares in the business which provide the holders voting right for the…

Q: Donna purchased investment land on January 1, Year 3, for $150,000. On January 1, Year 5, she sold…

A: Introduction: The profit a company makes after subtracting the costs of manufacturing, selling, and…

Q: a. Calculate the total units to be accounted for. = b. Calculate the Equivalent Units of Production…

A: Total units to be accounted for equals the sum of beginning work in process units and units placed…

Q: Is Warehouse included in a post closing trial balance?

A: All balance sheet accounts with non-zero balances at the conclusion of an accounting cycle are…

Q: Strait Co. manufactures office furniture. During the most productive month of the year, 3,200 desks…

A: Lets understand the basics. In high low method, fixed cost and variable cost gets separated from…

Q: POM acquired 80% of the share of SOM for $26,550 on 1 Jan 2019, the date of acquisition (DOA). At…

A: 1. Calculation of Goodwill on the acquisition of SOM Net assets value of SOM is Share capital+…

Q: Required Prepare a memo to Ken and Marilyn that addresses the tax consequences of a redemption of…

A: Redemption of Shares in S Corporation A shareholder of a Subchapter S corporation may sell his or…

Q: What amount of money will accumulate to $8193.9 in 94 days at an interest rate of 3.5% p.a.?

A: Present Value :— It is the value of future money at present day. Present Value = Future…

Q: Three production processes - A, B, and C - have the following cost structure: the selling price…

A: Fixed costs: Fixed costs are the costs incurred by a company irrespective of its level of…

Q: Direct Labor Costs During May, Darling Company accumulated 530 hours of direct labor costs on Job…

A: Direct Labour Costs :— It is the total cost incurred by company for wages of employees which is…

Q: Original payment of $3057 due today is settled by two equal payments due in 2 and 8 months. Assuming…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: Sea Ltd (the parent) sold an item of plant to Bill Ltd (the subsidiary) for $12,000 on 31/12/2021.…

A: Consolidating finances: Handling intercompany transactions One of the most frequent issues with…

Q: a. What are the techniques that are commonly used in Management accounting?

A: Management Accounting :— Management Accounting are also known as cost accounting of Management…

Q: K ces Capri Company began the current period with a $23,000 credit balance in the K. Capri, Capital…

A: Closing Entries of Revenue And expenses :— Debit all revenue accounts and credit the income…

Q: Required: 1. & 2. Calculate basic and the diluted earnings per common share for the year ended…

A: Given in the question: Outstanding as on January 1, 2021 Number of Common Shares…

Q: The following list of accounts is taken from the December 31, 2020, unadjusted trial balance of…

A: Adjusting entries are those journal entries which are passed at the end of the period for accurate…

Q: Determine which product KLP Co. should sell at the split-off point and which product KLP Co. should…

A: Joint Product :— Two are More Products separated in the Course of Processing each having sufficient…

Q: 11. Stanley invests $500 into an account that earns 9%p.a. compounding monthly. At the start of each…

A: Stanley Invests $500 into the account The compounding Interest rate is 9% Start of each new month,…

Q: Sept. Dec. 30 31 31 9.2%. Received interest on the Trust bond. Received interest on the Hanna and…

A: Bonds are a financing tool. This is a loan. Company issue bonds to get money and people invest money…

Q: As part of its executive compensation plan, Vertovec Inc. granted 45,000 of its no-par common shares…

A: Basic Earning Per Share :— It is calculated by dividing net Income by number of shares outstanding.…

Q: Instructions Prepare a sales budget for February. Prepare a production budget for…

A: Budgeting is a technique by which a Business Entity provide for the estimated sales and production…

Q: Question 2 Product X passes through 2 process to completion. In period 2, the cost of production was…

A: Process Account :— It is used for calculating requirement of cost on specific process. It is made in…

Q: Under the indirect method to prepare the statement of cash flows, a decrease in a current asset…

A: Cash Flow from operating activities :— It is the flow of cash & cash equivalents related to…

Q: Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: E10-6 Kelm Company purchased a new machineon October 1,2008, at a cost of $120.000. the Company…

Q: ERISA provides for full vesting of the employer's retirement contributions as follows: Select one:…

A: The ERISA was enacted to safeguard employees' retirement money against mismanagement and misuse. It…

Q: The balance of the credit line at yearend is:

A: The bank credit line as on September 30, 2020 is $25,300 and as it is the amount which Gibco Limited…

Q: The susceptibility of an assertion about a class of transaction, account balance or disclosure to a…

A: Audit risk is the possibility that an auditor won't find fraud or errors while reviewing a client's…

Q: Play Company acquired 70 percent of Screen Corporation's shares on December 31, 20X5, at underlying…

A: A consolidation worksheet is a spreadsheet that is used to create annual financial reports for a…

Q: Compute Rome’s regular hourly and overtime rates.

A: Sometimes Business Entities have shortage of time and they have to fulfill the given order within…

Q: What are the principles of federal finance?

A: Federal finance, in simple terms, would means to allocate the source of revenue among all the levels…

Q: The chief ranger of the state's Department of Natural Resources is considering a new plan for…

A: Net Present Value (NPV) :— It is the sum of present value of all cash flows. Difference in NPV…

Q: Required information [The following information applies to the questions displayed below.] Del Gato…

A: Bank reconciliation statement is an important statement that helps in computing and determining the…

Q: PSMO Company currently uses normal costing method in accumulating the cost of production. The…

A: Manufacturing Cost :— It is the sum of direct material used , direct labour costs & applied…

Q: Sylvia Company has a long-term plant asset with the following information as of the end of the year:…

A: When fair value of asset is reduced/declined lower than its carrying value then the difference value…

Q: Which of the following is not an accrued liability? Question 36 options: A) Warranty…

A: Accrued liabilities are costs that a business has incurred but not yet paid for. Interest…

Q: Storage Washing Average gallons on hand Number of batches a. Calculate the activity rates it b.…

A: Activity Based Costing :— Activity-based costing is a costing method that identifies activities in…

Q: A firm manufactures a product that sells for $16 per unit. Variable cost per unit is $8 and fixed…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. Variable…

Q: With respect to qualified retirement plans, nondiscrimination rules prohibit employers from giving…

A: Non discriminatory rules prohibit a Company to give preferential treatment to some of its key…

Q: Please explain step by step how to solve the question for cost allocation by using the double…

A: Cost allocation is the as the name suggests the allocation or in other words, the distribution of…

Q: Distribution center inventory (end-of-quarter): United states Canada Europe 497 45 19 53 5 34 20 9…

A: Inventory Turn over Ratio :— Inventory turnover is a financial ratio showing how many times a…

Q: Example . The table below shows transactions from Mr. Situmbeko's business for the year ended 31…

A: Lets understand the basics. Income statement is need to prepare to understand the revenue, expense…

Q: b) he Cape Cod Cotton Candy Company had the following information available regarding last year's…

A: Variable cost per unit :— It is the variable cost divided by number of units. Contribution margin…

Q: $180,000. The property is individually significant, and individually impaired by $60,000. Heavy…

A: A lease is an agreement between two parties. Where the first party grants the right to use its…

Q: Juliana opened a savings account with $467. The savings account compounds the interest annually and…

A: Time Value of money :— According to this concept, Value of money today is greater than value of…

Q: On December 31. Sulfur Corporation has the following data available: Net Income…

A: Return on equity: Return on equity measures the company financial performance by dividing the net…

Question

On December 1, 2021, your company borrowed $15,000, a portion of which is to be repaid each year on November 30. Specifically,
your company will make the following principal payments: 2022, $2,000; 2023, $3,000; 2024, $4,000; and 2025, $6,000. Show how
this loan will be reported in the December 31, 2022 and 2021, balance sheets, assuming principal payments will be made when
required.
Total Liabilities
Balance Sheet (Partial)
$
As of December 31
2022
2021
0
0
4

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
On December 1, 2021, your company borrowed $48,000, a portion of which is to be repaid each year on November 30. Specifically, your company will make the following principal payments: 2022, $6,400; 2023, $9,600; 2024, $12,800; and 2025, $19,200. Show how this loan will be reported in the December 31, 2022 and 2021 balance sheets, assuming principal payments will be made when required. Balance Sheet (Partial) As of December 31 2022 2021 Total Liabilities
How much shall be reported as interest income for 2022? ALVR Digital Bank granted a loan to a client on January 1, 2022. The interest on the loan is 12% payable annually starting December 31, 2022. The loan matures in three years on December 31, 2024. Pertinent information on the loan is provided below: Principal amount Origination fee received from the borrower Direct origination cost Indirect origination cost incurred After considering the origination fee received from the borrower and the direct origination cost incurred, the effective rate on the loan is 9%. 1,000,000 44,900 120,856 12,000
How much shall be reported as interest income for 2022? ALVR Digital Bank granted a loan to a client on January 1, 2022. The interest on the loan is 12% payable annually starting December 31, 2022. The loan matures in three years on December 31, 2024. Pertinent information on the loan is provided below: Principal amount Origination fee received from the borrower Direct origination cost Indirect origination cost incurred After considering the origination fee received from the borrower and the direct origination cost incurred, the effective rate on the loan is 9%. 1,000,000 44,900 120,856 12,000 O 90,000 O 96,836 O 120,000 O 129,115 O Answer not given
What is the interest income for 2021? National Bank granted a loan to a borrower on January 1, 2021. The interest on the loan is 10% payable annually starting December 31, 2021. The loan matures in three years on December 31, 2023. Principal amount Origination fee charged against the borrower Direct origination cost incurred 4,000,000 342, 100 150,000 After considering the origination fee charged against the borrower and the direct origination cost incurred, the effective rate on the loan is 12%. a. 400,000 O b. 380,900 c. 456,948 O d. 480,000
Assume that on December 1, 2015, your company borrowed $15,000, a portion of which is to berepaid each year on November 30. Specifically, your company will make the following principalpayments: 2016, $2,000; 2017, $3,000; 2018, $4,000; and 2019, $6,000. Show how this loan willbe reported in the December 31, 2016 and 2015 balance sheets, assuming that principal paymentswill be made when required.
Mermaid Bank granted a loan to a borrower on January 1, 2020. The interest on the loan is 12% payable annually starting December 31, 2020. the loan matures in three years on December 31, 2022. Principal amount 4,000,000 Direct origination cost incurred 80,000 Indirect origination cost incurred 40,000 Origination fee received from the borrower 310,000 a. Compute for the carrying amount of the loan receivable on January 1, 2020. b. Interest income for 2020 c. Carrying amount of the loan receivable on December 31, 2020.
What is the interest income for 2021? Philippine Bank granted a loan to a borrower on January 1, 2021. The interest on the loan is 8% payable annually starting December 31, 2023. Principal amount Origination fee charged against the borrower Direct origination cost incurred 3,000,000 100,000 260,300 After considering the origination fee charged to the borrower and the direct origination cost incurred, the effective rate on the loan is 6%. a. 240,000 O b. 189,618 c. 252,824 O d. 180,000
National Bank granted a loan to borrower on January 1, 2021. The interest on the loan is 10% payable annually starting December 31, 2021. The loan matures in thee years on December 21, 2023. Principal amount 4,000,000Origination fee charges against the borrower 342,100Direct Origination Cost incurred 150,000 What is the carrying amount of the loan receivable on January 1, 2021? a. 4,000,000b. 3,807,900c. 4,150,000d. 3,657,900
The business is expected to make principal payments totalling $400,000 towards the loan during the fiscal year to December 31, 2021. Given that the note payable (long term) is $2,500,000. How to record this in the general journal?
ABC Bank granted a loan to a borrower on Jan. 1, 2019. The interest on the loan is 10% payable annually starting Dec. 31,2019. The loan matures in five years on Dec. 31,2023. The data related to the loan are:Principal amount 8,000,000Origination fees received 700,000Direct Origination cost incurred 123,000The effective rate on the loan after considering the direct origination cost and the origination fee received is 12%. 1.What is the entry to record the receipt of the interest income on December 31, 2019?2.What is the interest income for 2019?