Accounts payable$-$trade

Short$-$term borrowings

$$750,000$

$400,000$

$400,000$

Mortgage payable, current portion

$$100,000$

$3,500,000$

Other bank loan, matures June $30,$ Year $2,1,000,000$

The $$1,000,000$ bank loan was refinanced with a $20-$year loan on January $15,$

Year $2,$ with the first principal payment due January $15,$ Year $3.$ Willem's audited

financial statements were issued February $28,$ Year $2.$ What amount should

Willem report as current liabilities at December $31,$ Year $1?$

A$.$ $$850,000$

B$.$ $$1,150,000$

C$.$ $$1,250,000$

D$.$ $$2,250,000$

Question: $2$ For a company to obtain a retail business license in a particular state, the

$2\mathrm{.}1\mathrm{.}21$

company is required to pay the state the equivalent of $3$ months of sales taxes on

its projected retail sales. This amount is fully refundable after $5$ years, provided

the company has filed all required sales tax returns and paid all sales taxes due.

Initially the company should report the payment related to this licensing

requirement as

A$.$ An expense.

B$.$ A current asset.

C$.$ A noncurrent liability.

D$.$ A noncurrent asset.

Question: $3$ How should unearned rent that has already been paid by tenants for the next

$2\mathrm{.}1\mathrm{.}25$ eight months of occupancy be reported in a landlord's financial statements?

A$.$ Current asset.

B$.$ Current liability.

C$.$ Long$-$term asset.

D$.$ Long$-$term liability.

Question: $4$ Ames, Inc., has $$1$ million of notes payable due June $15,$ Year $2.$ At the financial

$2\mathrm{.}1\mathrm{.}28$ statement date of December $31,$ Year $1,$ Ames signed an agreement to borrow up

to $$1$ million to refinance the notes payable on a long$-$term basis. The financing

agreement called for borrowings not to exceed $80\%$ of the value of the collateral

Ames was providing. At the date of issue of the December $31,$ Year $1,$ financial

statements, the value of the collateral was $$1\mathrm{.}2$ million and was not expected to

fall below this amount during Year $2.$ In its December $31,$ Year $1,$ balance sheet,

Ames should classify the notes payable as

Short$-$Term Long$-$Term

Obligations Obligations

A$.$ $$0$$$1,000,000$

B$.$ $$40,000$$$960,000$

C$.$ $$200,000$$$800,000$

D$.$ $$1,000,000$$$0$ What is the correct answers