On October 1, 2021, SheffiledCorporation issued $500, 000 of 10year, 5& bonds at 100. Interest ispayable semi-annualy on October 1and April 1. Sheffield's year end isDecember 31 and the companyrecords adjusting entries annually.Identify what amounts, if any,Sheffield would report as a currentliability and non current liability withrespect to the bond and bondintereset accounts on December31, 2021.

Non current liabilites are those liabilites that are not due for atleast one year.Current liabilites…

Answered: ration issued $500,000

Business

Accounting

ration issued $500,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 8RE

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

On October 1, 2021, Sheffiled
Corporation issued $500, 000 of 10
year, 5& bonds at 100. Interest is
payable semi-annualy on October 1
and April 1. Sheffield's year end is
December 31 and the company
records adjusting entries annually.
Identify what amounts, if any,
Sheffield would report as a current
liability and non current liability with
respect to the bond and bond
intereset accounts on December
31, 2021.

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