Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
-Give a numerical example of: Current liabilities. Long-term liabilities I post 2 picture to show you how to answer the qustions Q2- Give a numerical
-Give a numerical example of:
- Current liabilities.
- Long-term liabilities
I post 2 picture to show you how to answer the qustions
Q2- Give a numerical example of: A) Current liabilities Sep 2.2012, Mohammad borrows 30000 from ABC bank. The note bears interest at 6% per year. Principal and interest are due in 90 days. DR CR Sep2 cash 30000 Notes payable 30000 Notes payable 30000 Interest expense 450 Cash 20450 B) Long-term liabilities (2 marks). Company AKK on Jan 1, 2013 par value - 2000000 Issue price - 82.6405%, stated interst rate=10%. Market interest rate=12%. interest dates = 6/30 and 12/31 bond date Jan 1, 2013, DR CR Jan.1 Cash 826405 1173595 Discount on bonds payable Bonds payable 2000000 June 30 Bond interest expense 217360 Discount on bonds payable 117360 100000Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started