On January 2, 2017, Lester Company, a calendar-year company, issued $40,000 of notes payable, of which $5,000 is due on January 2 for each of the next eight years the first payment is due January 2, 2018). The proper balance sheet presentation on December 31, 2017, is
a. Current Liabilities, $40,000.
b. Current Liabilities, $5,000; Long-Term Liabilities, $35,000.
c. Long-Term Liabilities, S40,000.
d. Current Liabilities, $35,000; Long-Term Liabilities, $5,000.
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Ответ:
The correct option is C)
Explanation:
The $ 40,000 must be recorded in full as at 31st December 2017 given that the first tranch of $5,000 is not yet due until 2nd January 2018.
It may be recognised as follows on December 31st 2018:
Current Liabilities: $5,000
Long-Term Liabilities: $35,000
Because as at that time, the $5,000 would have been paid (all factors remaining constant) while the $35,000 is recognised as payable in future.
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Ответ:
incremental income of $ 500 will result from the special offer.
Explanation:
Consider the incremental costs and revenues resulting from accepting the special offer.
Sales (100×$275) 27,500
Variable cost (100×$250) (25,000)
Special Stitching (100×$20) (2,000)
Net Income/Loss 500
Therefore an incremental income of $ 500 will result from the special offer.