Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors. Balance sheet : This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity. To report: Liabilities on the balance sheet.

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Answer 1

Question

Chapter 12, Problem 12.35AP

1.

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To report: Liabilities on the balance sheet.

2.

To determine

Debt to equity ratio: Debt to equity ratio is used to evaluate the relationship between the total liabilities and total equity of the company. Debt to equity ratio helps the company to determine the proportion of debt and equity. When the ratio is greater than 1, then it is higher and thus, company faces higher risk. Debt to equity ratio is calculated by using the following formula:

Debt to equity=Total liabilitiesTotal equity

To calculate: Debt to equity ratio.

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Preparing a Debt Disclosure As of December 31 of Year 1, Dole Company's long-term debt consisted of the following: • $114,300-Unsecured note payable to bank due Year 2. • $405,000 -Unsecured note payable to bank due Year 4. • $540,000 --Unsecured note payable to bank due Year 6. • $81,000-Secured mortgage payable to bank due in equal installments in Year 2 through Year 6. . • $144,000-Secured note payable to bank due in Year 7. Prepare the required financial statement disclosure at December 31 of Year 1, indicating the amounts due in each of the next five years and thereafter. Note Payable Year 3 Year 4 Year 5 Year 6 Year 2 114,300 $ 0 ✓ 0✔ 40,500 * 0 ✓ 154,800 $ Total $114,300 $ 405,000 540,000 81,000 144,000 $ 0✔ $ 0✔ 0✔ 0 x 0✔ 0 $ 0✔ $ 405,000 ✓ 0 ✓ 0 x 0 ✓ 405,000 $ 0✔ $ 0✔ 0 ✓ 0 x 0 ✓ 0 $ 0✔ $ 0✔ 540,000 ✓ 40,500 x 0 ✓ 580,500 $ Thereafter 0✓ 0✔ 0 ✓ 0 ✓ 144,000 ✓ 144,000

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Answer 2

Question

Chapter 12, Problem 12.35AP

1.

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To report: Liabilities on the balance sheet.

2.

To determine

Debt to equity ratio: Debt to equity ratio is used to evaluate the relationship between the total liabilities and total equity of the company. Debt to equity ratio helps the company to determine the proportion of debt and equity. When the ratio is greater than 1, then it is higher and thus, company faces higher risk. Debt to equity ratio is calculated by using the following formula:

Debt to equity=Total liabilitiesTotal equity

To calculate: Debt to equity ratio.

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Answer 3

Question

Chapter 12, Problem 12.35AP

1.

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To report: Liabilities on the balance sheet.

2.

To determine

Debt to equity ratio: Debt to equity ratio is used to evaluate the relationship between the total liabilities and total equity of the company. Debt to equity ratio helps the company to determine the proportion of debt and equity. When the ratio is greater than 1, then it is higher and thus, company faces higher risk. Debt to equity ratio is calculated by using the following formula:

Debt to equity=Total liabilitiesTotal equity

To calculate: Debt to equity ratio.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 12.35AP

1.

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To report: Liabilities on the balance sheet.

2.

To determine

Debt to equity ratio: Debt to equity ratio is used to evaluate the relationship between the total liabilities and total equity of the company. Debt to equity ratio helps the company to determine the proportion of debt and equity. When the ratio is greater than 1, then it is higher and thus, company faces higher risk. Debt to equity ratio is calculated by using the following formula:

Debt to equity=Total liabilitiesTotal equity

To calculate: Debt to equity ratio.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 12.35AP

1.

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To report: Liabilities on the balance sheet.

2.

To determine

Debt to equity ratio: Debt to equity ratio is used to evaluate the relationship between the total liabilities and total equity of the company. Debt to equity ratio helps the company to determine the proportion of debt and equity. When the ratio is greater than 1, then it is higher and thus, company faces higher risk. Debt to equity ratio is calculated by using the following formula:

Debt to equity=Total liabilitiesTotal equity

To calculate: Debt to equity ratio.

Answer 6

Chapter 12, Problem 12.35AP

1.

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To report: Liabilities on the balance sheet.

Answer 7

Chapter 12, Problem 12.35AP

1.

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To report: Liabilities on the balance sheet.

Answer 8

2.

To determine

Debt to equity ratio: Debt to equity ratio is used to evaluate the relationship between the total liabilities and total equity of the company. Debt to equity ratio helps the company to determine the proportion of debt and equity. When the ratio is greater than 1, then it is higher and thus, company faces higher risk. Debt to equity ratio is calculated by using the following formula:

Debt to equity=Total liabilitiesTotal equity

To calculate: Debt to equity ratio.

Answer 9

2.

To determine

Debt to equity ratio: Debt to equity ratio is used to evaluate the relationship between the total liabilities and total equity of the company. Debt to equity ratio helps the company to determine the proportion of debt and equity. When the ratio is greater than 1, then it is higher and thus, company faces higher risk. Debt to equity ratio is calculated by using the following formula:

Debt to equity=Total liabilitiesTotal equity

To calculate: Debt to equity ratio.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 12 - Flipco signed a 10-year note payable on January 1,...Ch. 12 - Daniels's bonds payable carry a stated interest...Ch. 12 - A bond that matures in installments at regular...Ch. 12 - Prob. 4QC Ch. 12 - Nicholas Smith Fitness Gym has 700,000 of 20-year...Ch. 12 - Prob. 6QC Ch. 12 - Prob. 7QC Ch. 12 - The debt to equity ratio is calculated as a. Total...Ch. 12 - Mike Gordon wishes to have 80,000 in five years....Ch. 12 - Prob. 10BQC

Solution Summary: The author explains how to calculate Company RW's debt to equity ratio.

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