User Account

All Pages

How much would be classified as current liability

Assignment Help Accounting Basics
Reference no: EM132918006

Question - On November 1, Year 6, Bob the Builder purchases a lottery ticket after having a dream in which a stranger gave him a giant fortune cookie. A week later, he finds out that he won $1,000,000. On December 1, Year 6, he cashes in his lottery ticket and forms a corporation called Fortune Cookie Inc. (FCI, hereafter) with his lottery money. When FCI is formed, there is no other assets or liabilities. From the formation of FCI to the end of Year 10, the following transaction is the only transaction that has happened:

FCI issues an installment note on March 1, Year 7 (with a required yield of 6%) in exchange for the commercial building that it purchases from Mr. Mac. The note calls for three equal blended payments of 680,000 that are to be made at March 1, Year 8, Year 9, and Year 10. Note that FCI's fiscal year end is December 31.

Out of the total liability at December 31, Year 7, how much would be classified as current liability?

Reference no: EM132918006

Questions Cloud

How much would you have needed : Suppose you needed $16,000 to maintain a particular standard of living in 1977. How much would you have needed in 2003 to maintain the same standard of? living
What is the basis for human sexuality : How is sexuality linked to other forms of inequality and how are attitudes about human sexuality changing? Why? How? What's the basis for human sexuality?
Contextual word recognition : Contextual word recognition is often taught through the method of filling in the blanks on a worksheet.
Journalize the entry to close income summary account : During the year ending Dec. 31, the firm has profits of P820,000. Journalize the entry to close income summary account
How much would be classified as current liability : Out of the total liability at December 31, Year 7, how much would be classified as current liability?
Gardner naturalist intelligence : Describe ways to support Gardner's naturalist intelligence. Talk about the importance of providing this experience for children with Special Needs.
Find cost of providing coverage : Suppose that insurance price regulation suppresses rates below the cost of providing coverage. Explain why this outcome is inconsistent with the public interest
What is the approximate present value of the five payments : The payments are to begin three years from today. Given an annual rate of 8%, what is the approximate present value of the five payments
Understanding Misconceptions : Consider the common misconceptions teachers and administrators tend to have about designing instruction around understanding.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the depreciation expense on the equipment

As at December 31, 2017, Kendrick Corporation is having its financial statements audited for the first time ever. The auditor has found the following items.

  What are the journal entries to record the receipt of funds

What are the journal entries to record (a) the receipt of funds and allotment of debentures on 30 June 2013, (b) the payment of interest on 31 December 2013

  Calculate missing direct material variables

Calculate missing direct material variables. Use the ABS function when calculating variances, and use the drop-down selections for F or U when describing.

  Explains the detailed instructions for setting up employees

PowerPoint presentation, with 300-350 words of speaker notes that explains the process, and detailed instructions for setting up employees.

  Describe the audit procedures that you would undertake

Describe the audit procedures that you would undertake to verify the ownership, existence and valuation of the land and buildings

  Important characteristic in competition-monopolististic

Explain the most important characteristic in perfect competition, monopolistic competition, oligopoly, and monopolies and relate the characteristic to how these firms can make profits in the short run. In your analysis, make sure to relate an exa..

  Why capital investments considered among important decisions

Why are capital investments considered among the most important decisions made by a firm's management?

  What is the minimum transfer price

Assume that the Heating Division has sufficient excess capacity to provide the 15,000 heating units to the other division. What is the minimum transfer price

  LIST a schedule that shows the EPBO and the APBO

LIST a schedule that shows the EPBO, the APBO, the service cost, the interest cost, and the postretirement benefit expense for each of the years 2021-2028

  What paired trade suggests to you about manager implied view

Briefly discuss what this paired trade suggests to you about the manager's implied view as to (1) the general direction of future interest rate movement.

  In 2010 the moncrief company purchased from jim lester the

in 2010 the moncrief company purchased from jim lester the right to be the sole distributor in the western states of a

  How should rolen determine the sales price of the machine

What are the effects of the sale of the note receivable with recourse on Rolen's income statement for the year ended December 31, 2010, and its balance sheet at December 31, 2010?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd