For each of the following situations, indicate the amount shown as current or long-term liability on...
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For each of the following situations, indicate the amount shown as current or long-term liability on the balance sheet of Anchor, Inc., at December 31: a. Anchor's general ledger shows a credit balance of $312,500 in Long-Term Notes Payable. Of the amount, a $62,500 installment becomes due on June 30 of the following year. b. Anchor estimates its unpaid income tax liability for the current year is $85,000; it plans to pay this amount in March of the following year. c. On December 31, Anchor received a $37,500 invoice for merchandise shipped on December 28. The merchandise has not yet been received. The merchandise was shipped F.O.B. shipping point. d. During the year, Anchor collected $26,250 of state sales tax. At year-end, it has not yet remitted $3,500 of these taxes to the state department of revenue. e. On December 31, Anchor's bank approved a $12,500, 90-day loan. Anchor plans to sign the note and receive the money on January 2 of the following year. Current Liability Long-Term Liability a. Balance in Long-Term Notes Payable 0 $ b. Unpaid income tax liability c. Merchandise shipped F.O.B. Shipping Point d. Sales tax collected e. Bank loan For each of the following situations, indicate the amount shown as current or long-term liability on the balance sheet of Anchor, Inc., at December 31: a. Anchor's general ledger shows a credit balance of $312,500 in Long-Term Notes Payable. Of the amount, a $62,500 installment becomes due on June 30 of the following year. b. Anchor estimates its unpaid income tax liability for the current year is $85,000; it plans to pay this amount in March of the following year. c. On December 31, Anchor received a $37,500 invoice for merchandise shipped on December 28. The merchandise has not yet been received. The merchandise was shipped F.O.B. shipping point. d. During the year, Anchor collected $26,250 of state sales tax. At year-end, it has not yet remitted $3,500 of these taxes to the state department of revenue. e. On December 31, Anchor's bank approved a $12,500, 90-day loan. Anchor plans to sign the note and receive the money on January 2 of the following year. Current Liability Long-Term Liability a. Balance in Long-Term Notes Payable 0 $ b. Unpaid income tax liability c. Merchandise shipped F.O.B. Shipping Point d. Sales tax collected e. Bank loan
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Related Book For
Income Tax Fundamentals 2015
ISBN: 9781305177772
33rd edition
Authors: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill
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