Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Laura, the accountant for Ocsoc Ltd., is currently preparing the December 31, 2020, statement of financial position, and she asked you to help her classify

Laura, the accountant for Ocsoc Ltd., is currently preparing the December 31, 2020, statement of financial position, and she asked you to help her classify the following liabilities: Identify each of the liabilities as current or non-current (Long-term). (Note that some liabilities may be classified partially as current and partially as non-current.)

a. In the month of December, Ocsoc accepted $175,000 in deposits for goods to be delivered to customers by March 2021.
b. During December, Ocsoc withheld $8,000 from employee wages for CPP, EI, and taxes. The company is required to remit the amount to the government on January 15, 2021.
c. In 2019, Ocsoc obtained a $85,000 five-year loan repayable at maturity.
d. The company provides a one-year assurance-type warranty on its products and in December 2020 estimated a warranty expense of $26,000.
e. At the end of December, Ocsoc owed suppliers $50,000 for goods purchased during the last quarter of the year, which will be settled in the first quarter of 2021.
f. Ocsoc has a $52,000 loan, of which $5,200 is scheduled to be repaid in 2021.
g. During 2020, Ocsoc exceeded its cash balance by $5,900 and the bank automatically activated a line of credit to cover the shortage.

Current Long-term
a. Current? Long-term? Current and Long-term? $ $
b. Current? Long-term? Current and Long-term? $ $
c. Current? Long-term? Current and Long-term? $ $
d. Current? Long-term? Current and Long-term? $ $
e. Current? Long-term? Current and Long-term? $ $
f. Curren? Long-term? Current and Long-term? $ $
g. Current? Long-term? Current and Long-term? $ $

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

Authors: Robert Libby, Patricia Libby, Daniel G. Short

3rd Edition

0072458836, 978-0072458831

More Books

Students also viewed these Accounting questions

Question

How do people respond to cultural diff erences in communication?

Answered: 1 week ago

Question

How does communication shape cultures and social communities?

Answered: 1 week ago