Bennett Enterprises issues a $625,000, 90-day, 4% note to Spectrum Industries for merchandise inventory. CHART OF ACCOUNTSBennett EnterprisesGeneral Ledger ASSETS 110 Cash 111 Accounts Receivable
Bennett Enterprises issues a $625,000, 90-day, 4% note to Spectrum Industries for merchandise inventory.
CHART OF ACCOUNTSBennett EnterprisesGeneral Ledger
| ASSETS |
110 | Cash |
111 | Accounts Receivable |
112 | Interest Receivable |
113 | Notes Receivable |
115 | Inventory |
116 | Supplies |
118 | Prepaid Insurance |
120 | Land |
123 | Building |
124 | Accumulated Depreciation-Building |
125 | Office Equipment |
126 | Accumulated Depreciation-Office Equipment |
| LIABILITIES |
210 | Accounts Payable |
213 | Interest Payable |
214 | Notes Payable |
215 | Salaries Payable |
216 | Social Security Tax Payable |
217 | Medicare Tax Payable |
218 | Employees Federal Income Tax Payable |
219 | Employees State Income Tax Payable |
221 | Retirement Savings Deductions Payable |
224 | Federal Unemployment Tax Payable |
225 | State Unemployment Tax Payable |
226 | Vacation Pay Payable |
227 | Unfunded Pension Liability |
228 | Product Warranty Payable |
229 | EPA Fines Payable |
230 | Litigation Claims Payable |
| EQUITY |
310 | Common Stock |
311 | Retained Earnings |
312 | Dividends |
| REVENUE |
410 | Sales |
610 | Interest Revenue |
| EXPENSES |
510 | Cost of Goods Sold |
520 | Salaries Expense |
524 | Depreciation Expense-Building |
525 | Delivery Expense |
526 | Repairs Expense |
529 | Selling Expenses |
531 | Rent Expense |
532 | Depreciation Expense-Office Equipment |
533 | Insurance Expense |
534 | Supplies Expense |
535 | Payroll Tax Expense |
536 | Vacation Pay Expense |
537 | Pension Expense |
538 | Cash Short and Over |
539 | Product Warranty Expense |
540 | Damage Awards and Fines |
541 | Miscellaneous Expense |
710 | Interest Expense |
CHART OF ACCOUNTS |
Spectrum Industries |
General Ledger |
| ASSETS | 110 | Cash | 111 | Accounts Receivable | 112 | Interest Receivable | 113 | Notes Receivable | 115 | Inventory | 116 | Supplies | 118 | Prepaid Insurance | 120 | Land | 123 | Building | 124 | Accumulated Depreciation-Building | 125 | Office Equipment | 126 | Accumulated Depreciation-Office Equipment | | LIABILITIES | 210 | Accounts Payable | 213 | Interest Payable | 214 | Notes Payable | 215 | Salaries Payable | 216 | Social Security Tax Payable | 217 | Medicare Tax Payable | 218 | Employees Federal Income Tax Payable | 219 | Employees State Income Tax Payable | 221 | Retirement Savings Deductions Payable | 224 | Federal Unemployment Tax Payable | 225 | State Unemployment Tax Payable | 226 | Vacation Pay Payable | 227 | Unfunded Pension Liability | 228 | Product Warranty Payable | 229 | EPA Fines Payable | 230 | Litigation Claims Payable | | EQUITY | 310 | Common Stock | 311 | Retained Earnings | 312 | Dividends | | | REVENUE | 410 | Sales | 610 | Interest Revenue | | EXPENSES | 510 | Cost of Goods Sold | 520 | Salaries Expense | 524 | Depreciation Expense-Building | 525 | Delivery Expense | 526 | Repairs Expense | 529 | Selling Expenses | 531 | Rent Expense | 532 | Depreciation Expense-Office Equipment | 533 | Insurance Expense | 534 | Supplies Expense | 535 | Payroll Tax Expense | 536 | Vacation Pay Expense | 537 | Pension Expense | 538 | Cash Short and Over | 539 | Product Warranty Expense | 540 | Damage Awards and Fines | 541 | Miscellaneous Expense | 710 | Interest Expense | |
| Required: |
A. | Journalize Bennett Enterprises entries to record (refer to the companys Chart of Accounts for exact wording of account titles): 1. | the issuance of the note. | 2. | the payment of the note at maturity. Assume a 360-day year. | |
B. | Journalize Spectrum Industries entries to record (refer to the companys Chart of Accounts for exact wording of account titles): 1. | the receipt of the note. | 2. | the receipt of the payment of the note at maturity. Assume a 360-day year. | |
A. | Journalize Bennett Enterprises entries to record (refer to the companys Chart of Accounts for exact wording of account titles): 1. | the issuance of the note on January 1. | 2. | the payment of the note at maturity on April 1. Assume a 360-day year and round amounts to the nearest whole dollar. | |
B. Journalize Spectrum Industries entries to record (refer to the companys Chart of Accounts for exact wording of account titles): 1. | the receipt of the note on January 1. | 2. | the receipt of the payment of the note at maturity on April 1. Assume a 360-day year and round amounts to the nearest whole dollar. | |
Current Portion of Long-Term Debt
Connie's Bistro, Inc. reported the following information about its long-term debt in the notes to a recent financial statement (in millions):
Long-term debt consists of the following:
| December 31 |
| Current Year | Preceding Year |
Total long-term debt | $645,500 | | $355,000 | |
Less current portion | (187,200) | | (174,300) | |
Long-term debt | $458,300 | | $180,700 | |
a. How much of the long-term debt was disclosed as a current liability on the current years December 31 balance sheet? $
b. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-term debt? $
c. If Connie's Bistro did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year? $