Accounting

1. Jill Loomis believes a incumbent liability is a debt that can be expected to be paid in one year. Is Jill limit? Explain. Jill is correct, but there is a little more to it. on-line(prenominal) Liabilities are (1) The corporation reasonably expects to pay the debt from existing current assets or done the creation of other current liabilities. (2) The companionship go away pay the debt within one year or the run cycle, whichever is longer. 2. Frederickson Company obtains $40,000 in cash by signing a 9%, 6- month, $40,000 note collectable to First posit on July 1. Fredericksons fiscal year ends on family 30. What information should be reported? Frederickson Company should report the inwardness of the note payable and interest accrued during that 3 month period. E11-2 On June 1, Melendez Company borrows $90,000 from First Bank on a 6-month, $90,000, 12% note. book of instructions (a)Prepare the inlet on June 1. Date postingdebitCredit June 1Cash90,000 Notes payable90,000 (b)Prepare the adjusting entry on June 30. DateAccountDebitCredit June 30 involvement Expense900 by-line Payable900 (c) Prepare the entry at adulthood (celestial latitude 1), assuming monthly adjusting entries have been made through November 30.

DateAccountDebitCredit December 1 touch on Payable5,400 Notes Payable90,000 Cash95,400 (d) What was the total financing approach (interest expense)? $5,400 E11-18 Hrabik Corporation issued $600,000, 9%, 10-year bonds on January 1, 2008, for $562,613.This price resulted in an effective-interest rank of 10% on the bonds. Interest is payable semiannually on July 1 and January 1. Hrabik uses the effective-interest method to liqui! date bond premium or discount. Instructions Prepare the journal entries to record the following. (Round to the nearest dollar.) (a)The issuance of the bonds. DateAccountDebitCredit Jan 1Cash562,613 Discount on Bonds Payable37,387 Bonds Payable600,000 (b) The salary of...If you want to get a full essay, crop it on our website: OrderEssay.net

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