Reference no: EM131756637
Question: Flounder Corporation is preparing its December 31, 2017, balance sheet. The following items may be reported as either a current or long-term liability.
1. On December 15, 2017, Flounder declared a cash dividend of $4.30 per share to stockholders of record on December 31. The dividend is payable on January 15, 2018. Flounder has issued 1,000,000 shares of common stock, of which 50,000 shares are held in treasury.
2. At December 31, bonds payable of $103,245,000 are outstanding. The bonds pay 12% interest every September 30 and mature in installments of $25,811,250 every September 30, beginning September 30, 2018.
3. At December 31, 2016, customer advances (Unearned Revenue) were $13,025,000. During 2017, Flounder collected $30,004,000 of customer advances; advances of $27,881,000 should be recognized in income.
For each item above, indicate the dollar amounts to be reported as a current liability and as a long-term liability, if any.
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Reported as
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1.
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Dividends payable
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$
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a current liability or and as a long-term liability,
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2.
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Bonds payable (September 30, 2018 installment)
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$
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Bonds payable (Other than September 30, 2018 installment)
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$
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Interest payable
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$
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3.
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Customer advances
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$
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