Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dominique, the CFO fot Blossom Inc, asked you to classify the following liabilities for the December 31, 2024, statement of financial position: Identify each of

image text in transcribed
image text in transcribed
Dominique, the CFO fot Blossom Inc, asked you to classify the following liabilities for the December 31, 2024, statement of financial position: Identify each of the liabilities as current or non-current. (Note that some liabilities may be classified partially as current and partially as non-current.) 1. Blossom declared a dividend in 2024 of $25,800, which is payable on January 31,2025. 2. During the month of December, Blossom settled warranty claims with customers by issuing in-store credit totalling $15,480. 3. On August 1, 2024, Blossom obtained a $10,320 five-year loan with annual equal principal repayments of $2,064 due on July 31. Interest at 10% per year is payable every six months on January 31 and July 31 . 4. In December, the company withheld deductions totalling $5.780 from its employees, which will be remitted on January 15 . 2025. 5. During 2024, customers purchased five-year extended warranty plans totalling $41,280. Management expects that claims under these warranties will be equal in each year of the warranty period. The warranty period starts in 2025. 6. During the December holiday shopping period, the company sold $5,160 in gift cards. 7. During 2024, Blossom obtained a $5,160 loan with a three-year term from a bank. The loan contains a current ratio requirement, which the company breached on December 31. Breaching this requirement can trigger immediate repayment of theloan. 1. Current 2. $15480 Long-term 3. $ 4. Current $ 5. Current and Long-term $ 6. Current $ 7. Longterm Save for Later $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting IFRS Principles

Authors: Ilse Lubbe, Goolam Modack, Alex Watson

4th Edition

0199049238, 9780199049233

More Books

Students also viewed these Accounting questions

Question

What else could it do to cope with demand fluctuations?

Answered: 1 week ago

Question

What is WAN?

Answered: 1 week ago

Question

Th e last time I complained, nothing happened.

Answered: 1 week ago

Question

Th ey could have made my situation worse.

Answered: 1 week ago