Current Attempt in Progress Dominique, the CFO for Trattoria Inc, asked you to classify the following liabilities for the Decomber 31, 2020, statement of financial positione identify each of the liabilities as current or non-current. (Note that some liabilities may be classifted partially as current and partially as noncurtent) 1. Trattoria declared a dividend in 2020 of $25,000. which is payable on January 31,2021. 2. Duting the month of December, Trattoria settled warranty claims with customers by issuirg in-store credit totalling $14,000. 3. On August 1, 2020, Trattorla obtained a $9,600 fve vear loan with annual equal prindipal repayments of $1,920 due on July 31. Interest at 100 per year is payable every six montis on January 31 and July 31. 4. in December, the congany withheld deductions totalling 55,900 from its employees, which will be remitted on January 15 , 2021. 5. Durigs 2020, antomers purchased fwe year obtended warranty plans totalling $44,000. Management espects that clains under these warranties will be equat in each year of the war anty period. 6. Durins the December holiday stiopsheg period, the company cold 35,400 in sitt cards 7. Durink 2020, Trattoria obtainets $4,900 loan with a thee year term from a bank The loancontains a current ratio tiviloan. Current Attempt in Progress On May 1,2020, Christina Fashions borrowed $106,000 at a bank by signing a four year, 6% loan. The terms of the foan require equal principal payments of $26500 and accrued interest at 6% due annualiy on April 30 . The loan agreernent requires the company to maintaina minimum current ratio of 2,0 , The Deciember 31,2020, year end statement of fonancial pocition immediately prior to the reclassification of long-term debt, follows: Does Christina Fashions comply with the banK's current ratio requirement prior to recording the accrued interest and reclassification of the current portion of the long-term laan? (Round answer to 1 decimal place, es. 1.2) Current ratio Christina Fashions the bark's minimum current ratio. Attempts: 0 of 3 used Prepare journal entries to record the interest payable on December 31,2020. (Credit occount titles are automotically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account tities and enter O for the amounts). Prepare the journal entries to reclassify the portion of the long-term loan as current. (Credit account titles are outomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Does Christina Fashions breach the bank's current ratio requirement after preparing the journal entries above? (Round answer to 2 decimal places, es. 1.25.) Current ratio Christina Fishions the bank's minimum current ratio. List of Accounts Attempts: 0 of 3 used
