Question

Suppose a business receives a $453,000 long-term bank loan on December 31, 2019. The borrowing arrangement...

Suppose a business receives a $453,000 long-term bank loan on December 31, 2019. The borrowing arrangement requires the business to pay $113,250 by September 2020. Show how the business will report both current and long-term liabilities on its December 31, 2019 balance sheet.

Do not enter dollar signs or commas in the input boxes.

Current Liabilities:
Bank Loan, Current Portion Answer
Long-Term Liabilities:
Bank Loan, Long-Term Portion Answer
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Long term debt is debt with a maturity of longer than one year. The current portion of long-term debt is a amount of principal that will be due for payment within one year of the balance sheet date. It is stated in a separate line item in the balance sheet.

Total long term loan                = 453000

Current Liabilities:

Bank Loan, Current Portion = 113250

Long-Term Liabilities:

Bank Loan, Long-Term Portion = 339750

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
On December 31, 2019, Horizons Bank extends a loan to Begley Company and receives in exchange...
On December 31, 2019, Horizons Bank extends a loan to Begley Company and receives in exchange a 5 year, $50,000 zero-interest bearing note. The market rate for a similar note is 6%. Using this information, answer the following questions: Prepare the journal entry made by Horizons Bank to record the intial issuance of the note on December 31, 2019: 12.31.19 _ _________________________________    ____________________________________ ____________________________________ Prepare the journal entry made by Horizons Bank to record the interest on the note...
A company has the following balances at December 31, 2019: Accounts payable 60,000 Accounts receivable 52,500...
A company has the following balances at December 31, 2019: Accounts payable 60,000 Accounts receivable 52,500 Cash 80,000 Common stock 200,000 Equipment 96,000 Equity investments 76,300 Inventory 57,000 Long-term liabilities 100,000 Patents 32,000 Retained earnings 17,000 Salaries payable 15,000 Unearned revenue 1,500 Additional information: The cash balance includes $20,000 cash restricted for future plant expansion. Allowance for doubtful accounts is $3,800. Accumulated depreciation on equipment is $40,000. The long-term liabilities balance includes $12,000 due in 2020. Format guidance: Enter whole...
Ice Huts Inc. includes the following selected accounts in its general ledger at December​ 31, 2020​:...
Ice Huts Inc. includes the following selected accounts in its general ledger at December​ 31, 2020​: LOADING... ​(Click the icon to view the accounting​ records.) Required Prepare the liabilities section of Booth Ice Huts​ Inc.'s balance sheet at December​ 31, 2020​, to show how the company would report these items. Complete the​ liabilities' section of the balance sheet. ​(Use parentheses or a minus sign when entering contra account​ balances.) Booth Ice Huts Inc. Partial Balance Sheet December 31, 2020 Liabilities...
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 January 1, 2019, ABC Company borrowed $120,000 from the bank. The loan is a 7-year...
On January 1, 2019, ABC Company borrowed $120,000 from the bank. The loan is a 7-year note payable that requires annual payments of $24,500 every December 31, beginning December 31, 2019. Assume the loan has an interest rate of 10% compounded annually. Calculate the amount of the note payable at December 31, 2020 that would be classified as a current liability.
Compute the Balance in the Prepaid Rent Account as of December 31, 2019. Given; Our Business...
Compute the Balance in the Prepaid Rent Account as of December 31, 2019. Given; Our Business Paid $12,000 on Sept-1-2019 for the next 6 months of Rent. Assume the rent is spread evenly over the months involved. Show your answer as a number only, no commas, decimals, or dollar signs.
Presented here are the comparative balance sheets of Hames Inc. at December 31, 2020 and 2019....
Presented here are the comparative balance sheets of Hames Inc. at December 31, 2020 and 2019. Sales for the year ended December 31, 2020, totaled $660,000. HAMES INC. Balance Sheets December 31, 2020 and 2019 2020 2019 Assets Cash $ 25,000 $ 19,000 Accounts receivable 78,000 72,000 Merchandise inventory 103,000 99,000 Total current assets $ 206,000 $ 190,000 Land 50,000 40,000 Plant and equipment 125,000 110,000 Less: Accumulated depreciation (65,000 ) (60,000 ) Total assets $ 316,000 $ 280,000 Liabilities...
December 31, 2020 December 31, 2019 Current assets $124,400 $100,000 Plant assets (net) 394,272 333,000 Current...
December 31, 2020 December 31, 2019 Current assets $124,400 $100,000 Plant assets (net) 394,272 333,000 Current liabilities 85,994 73,000 Long-term liabilities 132,675 87,000 Common stock, $1 par 166,750 115,000 Retained earnings 133,253 158,000 Prepare a schedule showing a horizontal analysis for 2020, using 2019 as the base year. (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.) GLITTER INC. Condensed...
Following is a partially completed balance sheet for Hoeman Inc. at December 31, 2020, together with...
Following is a partially completed balance sheet for Hoeman Inc. at December 31, 2020, together with comparative data for the year ended December 31, 2019. From the statement of cash flows for the year ended December 31, 2020, you determine the following: Net income for the year ended December 31, 2020, was $97,500. Dividends paid during the year ended December 31, 2020, were $65,500. Accounts receivable decreased $11,000 during the year ended December 31, 2020. The cost of new buildings...
Here is financial information for Glitter Inc. December 31, 2020 December 31, 2019 Current assets $123,400...
Here is financial information for Glitter Inc. December 31, 2020 December 31, 2019 Current assets $123,400 $100,000 Plant assets (net) 394,350 330,000 Current liabilities 86,328 72,000 Long-term liabilities 133,280 85,000 Common stock, $1 par 166,440 120,000 Retained earnings 131,702 153,000 Prepare a schedule showing a horizontal analysis for 2020, using 2019 as the base year. (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT