What amount should be reported as accounts payable

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Reference no: EM132970290

Rolman Corporation reported accounts payable on December 31, 2006 at £4,500,000 before any necessary year-end adjustments to the following transactions:

- On December 27, 2006, Rolman Corporation wrote and recorded checks to creditors totaling £2,000,000. The checks were mailed on January 10, 2007.
- On December 28, 2006, Rolman Corporation purchased and received goods for £750,000, terms 2/10, n/30. The invoice was recorded and paid on January 3, 2007.
- Goods shipped FOB destination on December 30, 2006 from a seller to the Rolman Corporation were received January 15, 2007. The invoice cost is £325,000.

1. What amount should be reported as accounts payable on December 31, 2006?

Learning Question #4: Liam Co. borrowed a total of £1,800,000 from Candlestick, Inc. on June 1, 2006, evidenced by a 3-year serial note. The agreement warrants that £600,000 is due to be paid every June 1 of each year until maturity beginning 2007. Suppose that the relevant interest rate is 7%.

2. Solve for the interest expense from the note payable in year 2007.

3. As of December 31, 2007, solve for the total current liability to be presented in Liam Co.'s balance sheet?

Reference no: EM132970290

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