E14-1B (Classification of Liabilities) Presented below are various account balances of Royale Corp.
(a) Bonds payable of $12,000,000 maturing January 10, 2017.
(b) Unamortized discount on bonds payable, of which $8,500 will be amortized during the next year.
(c) Serial bonds payable, $6,000,000, of which $500,000 are due each December 1.
(d) Bank loans payable, due May 10, 2018. (The Company’s timber products requires 4 years of growth before harvesting.)
(e) Notes payable due December 15, 2016.
(f) Credit balances in customers’ accounts arising from returns and allowances after collection in full of account.
(g) Deposits made by customers who have ordered goods.
(h) Overdraft of $5,000 in a bank account. (No other balances are carried at this bank.)
(i) Amounts withheld from employees’ wages for FICA taxes.
Indicate whether each of the items above should be classified on December 31, 2015, as a current liability, a long-term liability, or under some other classification. Consider each one independently from all others; that is, do not assume that all of them relate to one particular business. If the classification of some of the items is doubtful, explain why in each case.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more