Prepare current and long-term liability sections of december

Assignment Help Financial Accounting
Reference no: EM132478503

Camden Biotechnology began operations in September 2021. The following selected transactions relate to liabilities of the company for September 2021 through March 2022. Camden's fiscal year ends on December 31. Its financial statements are issued in April.

2021

Point 1: On September 5, opened checking accounts at Second Commercial Bank and negotiated a short-term line of credit of up to $23,000,000 at the bank's prime rate (9.5% at the time). The company will pay no commitment fees.

Point 2: On October 1, borrowed $20 million cash from Second Commercial Bank under the line of credit and issued a five-month promissory note. Interest at the prime rate of 9% was payable at maturity. Management planned to issue 10-year bonds in February to repay the note.

Point 3: Received $1,800 of refundable deposits in December for reusable containers used to transport and store chemical-based products.

Point 4: For the September-December period, sales on account totaled $4,740,000. The state sales tax rate is 3% and the local sales tax rate is 3%. (This is a summary journal entry for the many individual sales transactions for the period.)

Point 5: Recorded the adjusting entry for accrued interest.

2022

Point 6: In March, paid the entire amount of the note on its March 1 due date, using proceeds from a February issuance of $17.5 million of 10-year bonds at face value, along with other available cash.

Point 7: The storage containers covered by refundable deposits are expected to be returned during the first nine months of the year. Half of the containers were returned in March 2022.

Required:

Question 1. Prepare the appropriate journal entries for items a-g.

Question 2. Prepare the current and long-term liability sections of the December 31, 2021, balance sheet. Trade accounts payable on that date were $296,000.

Reference no: EM132478503

Questions Cloud

What type of communication intervention appropriate for alex : Six-year-old Alex uses both immediate and delayed echolalia. When asked, "What do you want?" he replies, "What do you want?" He often sings jingles from TV.
Prepare entries with all supporting computation events : British Columbia Corporation, Prepare entries, with all supporting computations, for the following events. Please round dollar amounts to two decimal places.
What you found most surprising results of the survey : In at least 3 complete sentences tell what you found that was the most surprising results of the survey? If you or someone you loved needed mental health care.
How you will use this information to support the discussion : Finally, review the media programs related to coding and consider how you will use this information to support this Discussion. Note: In your Excel Video Coding
Prepare current and long-term liability sections of december : Prepare the current and long-term liability sections of the December 31, 2021, balance sheet. Trade accounts payable on that date were $296,000.
What was the common theme with the videos and reading : What was the common theme with the videos, reading, and your research? What did you think of the experiments? Which experiment did you find most interesting?
What is the taxable income : Property taxes on home, $3,762; Total medical expenses, $1,345; and Charitable contributions, $900. What is their taxable income?
Describe in detailpsychosocial milestone and theory : In the 2 page paper, describe in detail at least one physical, cognitive, and psychosocial milestone/concept/theory ranging from birth to age 12, supported.
Discuss the identification of incomes of british petroleum : Discuss the identification of incomes of BP( BRITISH PETROLEUM) and also introduce the recognition and measurement requirements of the income

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

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