Answered step by step
Verified Expert Solution
Question
1 Approved Answer
each of the following questions related to various short- term liabilities: a. On September 1, 2011, a company borrowed $ 100,000 from its bank and
each of the following questions related to various short- term liabilities: a. On September 1, 2011, a company borrowed $ 100,000 from its bank and signed a nine- month note with 8% interest. The principal and interest on the loan are to be paid when the note matures. What is the total amount related to this loan that should be reported under current liabilities on the companys December 31, 2011, balance sheet? b. The balance in a companys long- term mortgage payable account on December 31, 2011, is $ 150,000. This is to be repaid at the rate of $ 25,000 per year for the next six years. How should this liability be reported on the companys balance sheet on December 31, 2011? c. During the spring and summer of 2011, the Prairie Predators hockey team sold 2,000 season tickets for the fall 2011 winter 2012 hockey season. Each of the season tickets was sold for $ 500 and covered 20 games, with 8 to be played in the fall and 12 in the winter. What is the effect on the teams financial statements when the season tickets are sold? What amount of liability ( if any) related to the season tickets should be reported on the teams December 31, 2011, balance sheet? d. Bathurst Beverages collects cash deposits on its returnable bottles and other containers. Past experience indicates that virtually all the bottles and containers will be returned and the deposits refunded. During the current year, the company received $ 150,000 in such deposits and it disbursed $ 140,000 for bottles and other containers that were returned. How would this information be reflected in the year- end balance sheet for Bathurst Beverages
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started