Reference no: EM133170801

Question 1 - The following is a partial list of account balances for Van Buskirk Inc. as of December 31, 2021:

Trade Payables $5,000

Trade Receivables 6,000

Bonds payable (100% due in 10 years) 40,000

Mortgage payable (10% due within one year) 10,000

Notes payable (due in 6 months) 2,000

Salaries payable 800

Sales revenue 49,000

Current income taxes payable 8,000

Deferred revenue 800

Required - Prepare the liability section of Van Buskirk's classified statement of financial position for December 31, 20X1.

Question 2 - Mountain Gear Corporation has the following selected accounts after posting adjusting entries:

Accounts Payable $79,000

Notes Payable, 3-month 90,000

Accumulated Amortization-Equipment 14,000

Notes Payable, 5-year, 4% 30,000

Employee Benefits Expense 6,000

Interest Payable 1,500

Mortgage Payable 250,000

Provincial Sales Tax Payable 39,500

Required - Prepare the current liability section of Mountain Gear Corporation's statement of financial position, assuming $15,000 of the 5-year note is payable next year.

Question 3 - Scrap Company Ltd. reported the following information for 2022 (in millions).

Identify where these items would be classified on the statement of cash flows (operating, investing, or financing) and whether they would be added or deducted in those sections.

2022

Interest payments $585

Proceeds from the issuance of notes $3,833

Borrowings under a revolving line of credit $462

Debt retirements $2,794

Gain on early retirement of debt $350

Question 4 - Dorpco Corporation has the following capital shares outstanding:

(a) Common shares, 6,000 shares.

(b) $0.60 preferred shares, 2,000 shares, cumulative, with 2 years in arrears excluding the current year.

A cash dividend of $6,000 was declared and paid near the end of the current year.

(a) Total dividends received by the preferred shareholders would be $________.

(b) Total dividends received by the common shareholders would be $________.