The adjusted trial balance for Ray Corporation at July 31, 2021, the corporation?s fiscal year end, contained

Question:

The adjusted trial balance for Ray Corporation at July 31, 2021, the corporation?s fiscal year end, contained the following:

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Of the lease liability amount, $16,250 is due within the next year. Total payments on the note payable in the fiscal year 2022 will be $27,000: $7,000 is for interest and $20,000 for principal repayments.

Instructions

a. Prepare the non-current liabilities section of the balance sheet as at July 31, 2021.

b. Some of the accounts above belong in the balance sheet but not in its non-current liabilities section. What is the correct classification for them?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

Accounting Principles Volume 2

ISBN: 978-1119502555

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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