Kieso 13th ed sol ch 13

Kieso 13th ed sol ch 13 - EXERCISE 13-1(1015...

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EXERCISE 13-1 (10–15 minutes) (a) Current liability. (b) Current liability. (c) Current liability or long-term liability depending on term of warranty. (d) Current liability. (e) Footnote disclosure (assume not probable and/or not reasonably estimable). (f) Current liability. (g) Current or noncurrent liability depending upon the time involved. (h) Current liability. (i) Current liability. (j) Current liability. (k) Current liabilities or long-term liabilities as a deduction from face value of note. (l) Current liability. (m) Current liability. (n) Current liability. (o) Footnote disclosure. (p) Separate presentation in either current or long-term liability section. EXERCISE 13-3 (10–12 minutes) ALEXANDER COMPANY Partial Balance Sheet December 31, 2010 Current liabilities: Notes payable (Note 1) ..................................................... $300,000 Long-term debt: Notes payable refinanced in February 2011 (Note 1) .... 900,000 Note 1.
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Short-term debt refinanced. As of December 31, 2010, the company had notes payable totaling $1,200,000 due on February 2, 2011. These notes were refinanced on their due date to the extent of $900,000 received from the issuance of common stock on January 21, 2011. The balance of $300,000 was liquidated using current assets. OR Current liabilities: Notes payable (Note 1) ..................................................... $300,000 Long-term debt: Short-term debt expected to be refinanced (Note 1) ..... 900,000 (Same footnote as above.) EXERCISE 13-5 (25–30 minutes) (a) 2010 To accrue expense and liability for compensated absences Wages Expense ................................................ 13,824 Vacation Wages Payable ....................... 8,640 (1) Sick Pay Wages Payable ........................ 5,184 (2) To record payment for compensated time when used by employees Sick Pay Wages Payable ................................. 3,456 (3) Cash ......................................................... 3,456 2011 To accrue expense and liability for compensated absences Wages Expense ................................................ 14,976
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Vacation Wages Payable ....................... 9,360 (4)
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