Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Margaret, the accountant for Bargain Ltd., is currently preparing the December 31, 2024, statement of financial position, and she asked you to help her

image text in transcribed

Margaret, the accountant for Bargain Ltd., is currently preparing the December 31, 2024, 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. (Note that some liabilities may be classified partially as current and partially as non-current.) a. During 2024, Bargain borrowed $6,240 from its line of credit to cover a cash shortage. b. C. d. At the end of December, Bargain owed suppliers $144,000 for goods purchased during the last quarter of the year, which will be settled on March 31, 2025. In October 2020, Bargain obtained a $96,000 five-year loan repayable at maturity. The company provides a one-year assurance-type warranty on its products and in December 2024 estimated a warranty expense of $43,200. e. Bargain has a $24,000 loan, of which $1,920 is due to be repaid in 2025. f. During December, Bargain withheld $3,360 from employee wages for CPP, El, and taxes. The company is required to remit the amount to the government on January 14, 2025. In the month of November, Bargain accepted $168,000 in deposits for goods to be delivered to customers by June 2025. b. C. d. < 10 > > Current 10 Long-term 07 17 17 en

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

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

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: J. David Spiceland, Wayne Thomas, Don Herrmann

3rd edition

978-0078025549

Students also viewed these Accounting questions