Seattle Chocolates for the year ended December 31,
2002:
File
name: Seattle-Chocolates-for-the.xlsFile
type: application/vnd.ms-excel Price: $4.50
The following are selected items from the
accounting records of Seattle Chocolates for the year ended December 31, 2002:
Note payable to northwest Bank $500,000 Income
taxes payable 40,000 Accrued expenses and payroll taxes 60,000 Mortgage note
payable 750,000 Accrued interest on mortgage note payable 5,000 Trade accounts
payable 250,000 Unearned revenue 15,000 Potential liability in pending lawsuit
100,000
Other information
1. The note payable to Northwest Bank is due in 60
days. Arrangement have been made to renew this note for an additional 12 months
2. The mortgage requires payments of $6,000 per
month. An amortization table shows that its balance will be paid down to
$739,000 by December 31, 2003.
3. Accrued interest on the mortgage note payable is
paid monthly. The next payment is due near the end of the first week in January
2003.
4. Seattle Chocolates has been sued for $100,000 in
a contract dispute. It is not possible at this time, however, to make a
reasonable estimate of the possible loss, if any, that the company may have
sustained.
Instructions
a. Using the information provided prepare the
current and long-term liability sections of the company's balance sheet dated
December 31, 2002 (Within each classification, items may be listed in any
order)
b. Explain briefly how the information in each of
the four numbered paragraphs above influenced your presentation of the
company's liabilities.
SOLUTION PREVIEW
a. Using the information proided prepare the
current and long-term liability sections of the ompany's
balance
sheet dated ecember 31, 2002 (Within each classiication, items may be listed in
any order)
|
Current
Liabilities:
|
|
|
Note
payable to northwest Bank
|
$500,000
|
|
Income
taxes payable
|
40,000
|
|
Accrued
expenses and payroll taxes
|
60,000
|
