Part A: Current liabilities, contingencies, and LT liabilities

1. Collier borrowed $175,000 on October 1 and is required to pay ?180,000 on March 1. What amount is the note payable recorded at on October 1 and how much interest is recognized from October 1 to December 31?

2. On December 31, 2018, Frye Co. has 4,000,000 of short-term notes payable due on February 28, 2019. On December 23, 2015, Frye arranged a line of credit with County Bank which allows Frye to borrow up to 3,500,000 at one percent above the prime rate for three years. On February 2, 2019, Frye borrowed 2,500,000 from County Bank and used 500,000 additional cash to liquidate 3,000,000 of the short-term notes payable. The amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2018 statement of financial position which is issued on March 15, 2019 is

3. Valencia Corporation has the following liabilities at December 31, 2018: 8.9% note payable issued November 1, 2018, maturing October 31, 2019 ?1,150,000 7.25% note payable issued August 1, 2018, payable in twelve equal annual installments of $90,000 beginning August 1, 2019 1,080,000 Valencia's December 31, 2018 financial statements were issued on March 19, 2019. On January 23, 2019, the entire ?1,150,000 balance of the 8.9% note was refinanced by issuance of a long-term obligation payable in a lump sum. In addition, on December 29, 2018, Valencia consummated a non-cancelable agreement with the lender to refinance the 7.25%, ?1,080,000 note on a long-term basis, on readily determinable terms that have not yet been implemented. On the December 31, 2018 statement of financial position, the amount of these notes payable that Valencia should classify as short-term obligations is

4. On February 10, 2019, after issuance of its financial statements for 2018, House Company entered into a financing agreement with Lebo Bank, allowing House Company to borrow up to ?4,000,000 at any time through 2021. Amounts borrowed under the agreement bear interest at 2% above the bank's prime interest rate and mature two years from the date of loan. House Company presently has ?1,500,000 of notes payable with First National Bank maturing March 15, 2019. The company intends to borrow ?2,500,000 under the agreement with Lebo and liquidate the notes payable to First National. The agreement with Lebo also requires House to maintain a working capital level of ?6,000,000 and prohibits the payment of dividends on ordinary shares without prior approval by Lebo Bank. From the above information only, the total short-term debt of House Company as of the December 31, 2018 statement of financial position date is

5. Everhart Company issues 10,000,000, 6%, 5-year bonds dated January 1, 2019 on January 1, 2019. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. What are the proceeds from the bond issue? ---- Present value of a single sum for 5 periods .883 85 .8626] Present value of a single sum for 10 periods .78120 .74409 Present value of an annuity for 5 periods 4.64583 4.57971 4.32948 4.21236 Present value of an annuity for 10 periods 8.75206 8.53020 7.72173 7.36009 1. Percy Corporation was organized on January 1, 2019, with an authorization of 1,200,000 ordinary shares with a par value of 6 per share. During 2019, the corporation had the following capital transactions: January 5 issued 675,000 shares @ 10 per share July 28 purchased 90,000 shares @ 11 per share December 31 sold the 90,000 shares held in treasury @ 18 per share Percy used the cost method to record the purchase and reissuance of the treasury shares. What is the total amount of share premium as of December 31, 2019? 2. Sosa Co.'s equity at January 1, 2019 is as follows: Share capitalordinary, 10 par value; authorized 300,000 shares; outstanding 225,000 shares 2,250,000 Share premiumordinary 900,000 Retained earnings 2,190,000 Total 5,340,000 During 2019, Sosa had the following share transactions: Acquired 6,000 shares of its shares for 270,000. Sold 3,600 treasury shares at 50 a share. Sold the remaining treasury shares at 41 per share. No other share transactions occurred during 2019. Assuming Sosa uses the cost method to record treasury share transactions, the total amount of all share premium accounts at December 31, 2019 is 3. An analysis of equity of Hahn Corporation as of January 1, 2019, is as follows: Share capitalordinary, par value 20; authorized 100,000 shares; issued and outstanding 90,000 shares 61,800,000 Share premiumwrdinary 900,000 Retained earnings 760,000 Total 63,460,000 Hahn uses the cost method of accounting for treasury shares and during 2015 entered into the following transactions: Acquired 2,500 of its shares for 75 ,000. Sold 2,000 treasury shares at 35 per share. Sold the remaining treasury shares at 20 per share. Assuming no other equity transactions occurred during 2019, what should Hahn report at December 31, 2019, as total share premium? 4. On January 1, 2019, Kain Co. purchases bonds issued by the Central Bank of Midland. Kain purchases debt investments that it plans to manage on a held-for- collection basis (and account for at amortized cost). Kam also manages and evaluates this investment in conjunction with a related liability that is measured at fair value. Kain plans to hold the debt investment until it matures in ve years. At December 31, 2019, the amortized cost of this investment is 200,000; its fair value at December 31, 2019, is 226,000. If Kam chooses the fair value option to account for this investment, when must the election be made and at what value will the bond investment be reported on the December 31, 2019 statement of nancial position