In-Lab 10 Current liabilities with solution

In-Lab 10 Current liabilities with solution - ACCT 401L Lab...

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ACCT 401L Lab Assignment #10 Current Liabilities Name____________________ Date 4/8/11 Problem 1: Branch Company, a building materials supplier, has $18,000,000 of notes payable due April 12, 2012. At December 31, 2011, Branch signed an agreement with First Bank to borrow up to $18,000,000 to refinance the notes on a long-term basis. The agreement specified that borrowings would not exceed 75% of the value of the collateral that Branch provided. At the date of issue of the December 31, 2011, financial statements, the value of Branch's collateral was $20,000,000. REQUIRED: On its December 31, 2011, balance sheet, indicate how Branch should classify the notes as current and long-term liabilities. Solution to Problem 1
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Problem 2: Northeast Airlines operates a frequent flyer marketing program under which mileage credits are earned by flying on Northeast. The program was designed to retain and increase the business of frequent travelers by offering incentives for their continued patronage.
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In-Lab 10 Current liabilities with solution - ACCT 401L Lab...

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