Question

A company has $300,000 of 20-year bonds payable, which mature in the current year. How are...

A company has $300,000 of 20-year bonds payable, which mature in the current year. How are these liabilities classified on the company's balance sheet?

a.$300,000 is reported as long term liability.

b.$300,000 is reported as current liability.

c.$150,000 is reported as current liability.

d.$150,000 is reported as long term liability.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

As per the standard any liability which is to be matured in the current year is to be classified as current liability. On the other hand liability which is not going to mature in the current year but if the long-term purpose is to be recorded as long term liability.

The given case the bonds are going to be matured in the current year therefore this liability is to be classified as current liability. The amount to be reported will be $300,000

Therefore the correct option is B

If you find the answer helpful please upvote

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Redfern Company has current assets of $150,000 and current liabilities of $60,000. How much inventory...
1. Redfern Company has current assets of $150,000 and current liabilities of $60,000. How much inventory could it purchase on account and achieve its minimum desired current ratio of 2 to 1? a.$40,000 b.$30,000 c.$10,000 d.$20,000 2. Which of the following accounts is not classified as a current liability? a.Salaries payable b.Taxes payable c.Accounts payable d.Note payable, due in three years 3. Which of the following is not classified as a noncurrent liability? a.Bonds payable b.Current portion of long-term debt...
Venus Ltd.secured a $750,000, five year, 8% note payable on January 1. The loan will be...
Venus Ltd.secured a $750,000, five year, 8% note payable on January 1. The loan will be repaid using blended monthly payments with a fixed monthly principal payment of $12,500. Which of the following represents how the loan will be reflected on the balance sheet at the end of the first year? A) Long term liabilities -- note payable: $750,000 B) Current portion of long term debt: $ 150,000, Long term liabilities -- note payable: $450,000 C) Current portion of long...
The balance sheet at December 31, 2018, for Nevada Harvester Corporation includes the liabilities listed below:...
The balance sheet at December 31, 2018, for Nevada Harvester Corporation includes the liabilities listed below: a. 10% bonds with a face amount of $42 million were issued for $42 million on October 31, 2009. The bonds mature on October 31, 2029. Bondholders have the option of calling (demanding payment on) the bonds on October 31, 2019, at a redemption price of $42 million. Market conditions are such that the call is not expected to be exercised. b. Management intended...
On June 30, 2020, Ivanhoe Company issued $3,810,000 face value of 16%, 20-year bonds at $4,956,520,...
On June 30, 2020, Ivanhoe Company issued $3,810,000 face value of 16%, 20-year bonds at $4,956,520, a yield of 12%. Ivanhoe uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2021, balance sheet. (Round answers to 0 decimal places, e.g. 38,548.) Ivanhoe Company Balance Sheet                     ...
Interest payable A. long-term liabilities B. current liabilities C. expense D. stockholder's equity E. current asset...
Interest payable A. long-term liabilities B. current liabilities C. expense D. stockholder's equity E. current asset QUESTION 20 Salaries payable A. long-term liabilities B. current liabilities C. expense D. intangible asset E. stockholder's equity QUESTION 21 Current portion of long-term debt A. long-term liabilities B. current liabilities C. expense D. stockholder's equity E. property, plant & equipment QUESTION 22 Mortgage payable A. long-term liabilities B. current liabilities C. expense D. long-term asset E. stockholder's equity QUESTION 23 Common Stock A....
1.- The following balance sheet figures are available on the Puma Construction Company:                Current Long-Term...
1.- The following balance sheet figures are available on the Puma Construction Company:                Current Long-Term Total Assets $100,000 $100,000 $200,000 Liabilities 80,000 70,000 150,000   Find the total net worth of the company. 2-The following data regarding Ally Construction Company are available:   Current assets $300,000 Current liabilities 200,000 Long-term liabilities 500,000 Total net worth 200,000    What is the value of the company's fixed assets?   3.-Name three accounts typical of the liability side of a balance sheet. In what side would...
Accounts Payable $76,000 Salaries Payable $7,000 Mortgages Payable (long-term) 77,000 Bonds Payable (current portion) 28,000 Interest...
Accounts Payable $76,000 Salaries Payable $7,000 Mortgages Payable (long-term) 77,000 Bonds Payable (current portion) 28,000 Interest Payable 15,000 Premium on Bonds Payable 12,000 Bonds Payable (long-term) 65,000 Unearned Revenue (short-term) 3,100 Total Stockholders' Equity 180,000 Requirements: 1. Report these liabilities on the Route MakerRoute Maker Wireless balance? sheet, including headings and totals for current liabilities and? long-term liabilities. Compute Route MakerRoute Maker ?Wireless's debt to equity ratio at December? 31, 20182018. requirement 2
Which of the following situations would not require that long-term liabilities be reported as current liabilities...
Which of the following situations would not require that long-term liabilities be reported as current liabilities on a classified balance sheet? Multiple Choice The company intended to refinance the debt and did so prior to issuance of the financial statements. The long-term debt is callable by the creditor. The long-term debt matures within the upcoming year. The creditor has the right to demand payment due to a contractual violation.
For the long term liabilities section under the balance sheet like bonds payable do you include...
For the long term liabilities section under the balance sheet like bonds payable do you include the full amount or do you subtract the accrued interest and/or current maturity that is in current liabilities? For example if there is a bond payable for 100,000 with current maturity of 25,000 and interest rate of 8% due every October 1st starting this year what would be the long term liabilities section of the balance sheet 12/31?
Presented here are long-term liability items for Windsor, Inc. at December 31, 2022. Bonds payable (due...
Presented here are long-term liability items for Windsor, Inc. at December 31, 2022. Bonds payable (due 2026) $860,000 Notes payable (due 2024) 79,000 Discount on bonds payable 33,000 Prepare the long-term liabilities section of the balance sheet for Windsor, Inc.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT