Reference no: EM132636819
Question - A. The ledger of CBX company as of December 31, 20x1 includes the following:
10% Note payable 80,000
12% Note payable 120,000
14% Mortgage note payable 60,000
Interest payable -
Additional information:
- CBX company's financial statements were authorized for issue on April 15, 20x2.
- The 10% note payable is due on July 1, 20x2 and pays semi-annual interest every July 1 and December 31. On January 28, 20x2, CBX company entered into a refinancing agreement with a bank to refinance the entire note by issuing a long-term obligation.
- The 12% note payable is due on March 31, 20x2 and pays annual interest every March 31. On January 31, 20x2, CBX company extended the maturity of the note to March 31, 20x3 under the existing loan agreement. The extension of maturity date is at the option of CBX.
- The 14% mortgage note is due on December 31, 20x9. Per agreement with the creditor, CBX is to pay quarterly interests on the note, failure to do so will render the note payable on demand. INFIRM failed to pay the 3rd and 4th quarterly interests on the note during 20x1.
How much is the total current liabilities?
a. 119,000
b. 155,000
c. 172,000
d. 189,000
Use the following information for the next three questions:
The ledger of CLJ company in 20x1 includes the following:
Jan. 1, 20x1 Dec. 31, 20x1
Current assets 1,200,000 ?
Noncurrent assets 4,000,000 ?
Current liabilities 900,000 1,000,000
Noncurrent liabilities ? 3,000,000
Additional information:
- CLJ company 's working capital as of December 31, 20x1 is twice as much as the working capital as of January 1, 20x1.
- Total equity as of January 1, 20x1 is 1,700,000. Profit for the year is 2,400,000 while dividends declared amounted to 1,000,000. There were no other changes in equity during the year.
B. How much is the total noncurrent liabilities as of January 1, 20x1?
a. 2,600,000
b. 2,800,000
c. 3,200,000
d. 3,400,000
C. How much is the total current assets as of December 31, 20x1?
a. 1,600,000
b. 800,000
c. 300,000
d. 2,200,000
D. How much is the total noncurrent assets as of December 31, 20x1?
a. 4,500,000
b. 6,500,000
c. 5,800,000
d. 5,500,000
E. The chuchay co. had the following information for 20x1:
Accounts receivable turnover 10:1
Total assets turnover 2:1
Average receivables during the year 400,000
Total assets, January 1, 20x1 800,000
How much is the total assets as of December 31, 20x1?
a. 4,000,000
b. 3,800,000
c. 3,200,000
d. 2,800,000
F. Izone's trial balance reflected the following account balances at December 31, 20x1:
Accounts receivable (net) 24,000
Trading securities 6,000
Accumulated depreciation on equipment and furniture 15,000
Cash 16,000
Inventory 30,000
Equipment 25,000
Patent 4,000
Prepaid expenses 2,000
Land held for future business site 18,000
In Izone's December 31, 20x1 balance sheet, the current assets total is
a. 95,000.
b. 87,000.
c. 82,000.
d. 78,000.