Questions E 14-1, 14-4, and14-10

BE14-14 (L04) Shonen Knife Corporation has elected to use the fair value option for one of its notes payable issued at an effective rate of 11% and has a carrying value of S 16,000. At yearend, Shonen Knife's borrowing rat has declined, the fair value of the note payable is now $17,500. (a) Determine the unrealized holding gain or los (b) Prepare the entry to record any unrealized holding gain or loss BE14-15 (LO5) At December 31, 2017, Hyasaki Corporation has the following account balances: Bonds payable, due January 1, 2026 Discount on bonds payable Interest payable $2,000,000 88,000 80,000 Show how the above accounts should be presented on the December 31, 2017, balance sheet, including the proper clas EXERCISES E14-1 (no1) (Classification of Liabilities) Presented below are various account balances of K.D. Lang Inc. Unamortized premium on bonds payable, of which $3,000 will be amortized during the next year. b) Bank loans payable of a winery, due March 10, 2021. (The product requires aging for 5 years before sale.) (c) Serial bonds payable, $1,000,000, of which $200,000 are due each July 31. (d) Amounts withheld from employees' wages for income taxes (e) Notes payable due January 15, 2020 (o) Credit balances in customers' accounts arising from returns and allowances after collection in full of accou (g) Bonds payable of $2,000,000 maturing June 30, 2018. (h) Overdraft of $1,000 in a bank account. (No other balances are carried at this bank.) G) Deposits made by customers who have ordered goods. Indicate whether each of the items above should be classified on December 31, 2017, as a current liability, a long-ter or under some other classification. Consider each one independently from all others; that is, do not assume that all of pacticular business. If the classification of some of the items is doubtful, explain why in each case. E14-2 (LO1) (Classification) The following items are found in the financial statements. a) Discount on bonds payable. (b) Interest expense (credit balance). (c) Unamortized bond issue costs. (d) Gain on repurchase of debt. e) Mortgage payable (payable in equal amounts over next 3 years). (f) Debenture bonds payable (maturing in 5 years) (g) Notes payable (due in 4 years). (h) Premium on bonds payable. 6) Bonds payable (due in 3 years)