In this simulation, you are asked to address questions related to the accounting for long-term liabilities. Prepare
Question:
In this simulation, you are asked to address questions related to the accounting for long-term liabilities. Prepare responses to allparts.
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KWW Professional Simulation Long-Term Liabilities Time Remaining 4 hours 30 minutes Unspit Spit Hortz SpE Vertical Spreadsheet Cacuaor Ext Journal Entry Analynts | Financial Statomonta Rosources Diroctions Situation Honoré de Balzac Inc. has been producing quality children's apparel for more than 25 years. The company's fiscal year runs from Åpril 1 to March 31. The following information relates to the obligations of Balzac as of March 31, 2012. Bonds Payable Balzac issued $5,000,000 of 11% bonds on April 1, 2011. Market interest rates on that date for bonds of similar risk were 10%. Bonds mature on April 1, 2021; interest is paid annually on April 1. Notes Payable Balzac has signed several long-term notes with financial institutions and insurance companies. The maturities of these notes are given in the schedule below. The total unpaid interest for all of these notes amounts to $210,000 on March 31, 2012. Amount Due 200,000 300,000 150,000 150,000 600,000 500,000 $1,900,000 Due Date April 1, 2012 July 1, 2012 October 1, 2012 January 1, 2013 April 1, 2013-March 31, 2014 Asset Retirement Obligation Balzac purchased a warehouse in 2007 for $300,000. In February 2012, due to the passage of a new wetlands restoration law, Balzac will be required to restore the wetlands surrounding the warehouse site when the warehouse is abandoned in 2016. Balzac has estimated that the present value of the cost restore the site is $35,000. Journal Entry Analysis Financial Statomonts Rosources Directions Situation Prepare the journal entry for the issuance of the bonds and on the first interest payment date. псe Journal Entry Analysis Financial Statoments Rosourcon Stuation Directions Use a computer spreadsheet to prepare an amortization schedule for the bonds. Analysis Financlal Statoments Rosourcas Journal Entry Directions Stuation Prepare the long-term liabilities section of the balance sheet and appropriate notes to the financial statements for Balzac Inc. as of March 31, 2012.
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Journal Entries April 1 2011 Cash 530722836 Premium on Bonds Payable 30722836 Bonds Payable 500000000 Price using Tables 5000000 X 38554 1927700 55000...View the full answer
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