Question

In: Accounting

The Total Liabilities for Ozium Corporation as of the Balance Sheet date of December 31, 2020...

The Total Liabilities for Ozium Corporation as of the
Balance Sheet date of December 31, 2020 are:
Salaries & Wages Payable         5,500
Long-Term Debt    300,000 ($250,000 is due for payment in 2021)
Notes Payable    750,000 ($250,000 is due for payment after December 31, 2021)
Unearned Revenue      16,500
Accounts Payable      25,000
In addition, the company is involve in two lawsuits
that are expected to be closed by March 31, 2021.
The first lawsuit is for $150,000 and the lawyers
predicts this to be reasonable possible. The other
lawsuit is for $350,000 and the lawyer predicts this
to be Probable and can be reasonably estimated.
What is the total Current Liabilities?

Solutions

Expert Solution

Calculation of Current Liability
Particulars $
Salaries & Wages Payable 5500
Long-Term Debt 250000 (Note-1)
Notes Payable 500000 (Note-2)
Unearned Revenue 16500
Accounts Payable 25000
Lawsuit 350000 (Note-3)
Total 1147000
Note-1: Laibilities which are expected to be setteled with in one year are considered as cureent liability hence $250000 is considered as current liability.
Note-2: $250000 are expected to be setteled after one year that's why considered as Non Current liability.
Note-3: Record a contingent liability when it is probable that a loss will occur, and you can reasonably estimate the amount of the loss.
Note-4 : Disclose the existence of a contingent liability in the notes accompanying the financial statements if the liability is reasonably possible but not probable, or if the liability is probable, but you cannot estimate the amount. “Reasonably possible” means that the chance of the event occurring is more than remote but less than likely.That's why lawsuit of $150000 is not included in current liability.

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

At the financial statement date of December 31, 2020, the liabilities outstanding of Sheridan Corporation included...
At the financial statement date of December 31, 2020, the liabilities outstanding of Sheridan Corporation included the following: 1. Cash dividends on common stock, $44,800, payable on January 15, 2021. 2. Note payable to Wabaso State Bank, $450,000, due January 20, 2021. 3. Serial bonds, $1,396,000, of which $349,000 mature during 2021. 4. Note payable to Orlando National Bank, $345,000, due January 27, 2021. The following transactions occurred early in 2021: January 15: The cash dividends on common stock were...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows: Current Assets Liabilities...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows: Current Assets Liabilities Cash $ 15,000 Accounts payable $ 17,000 Accounts receivable 20,000 Notes payable 25,000 Inventory 30,000 Bonds payable 55,000 Prepaid expenses 12,500 Fixed Assets Stockholders’ Equity Gross plant and equipment $ 255,000 Preferred stock $ 25,000 Less: Accumulated depreciation 51,000 Common stock 60,000 Paid in Capital 30,000 Net plant and equipment $ 204,000 Retained earnings 69,500 Total assets $ 281,500 Total liabilities and stockholders’ equity...
The Comparative Balance Sheet, Income Statement and supplemental date for Gallagher Corporation as of December 31,...
The Comparative Balance Sheet, Income Statement and supplemental date for Gallagher Corporation as of December 31, 2021 are provided. GALLAGHER CORPORATION Comparative Balance Sheet December 31 2021 2020 Assets Cash . $ 65,000 $ 51,000 Accounts Receivable (net) . 145,000 122,000 Inventory . 75,000 61,000 Debt Investments (available for sale) . 46,000 76,000 Equipment . 70,000 48,000 Accumulated Depreciation: Equipment . (20,000) (14,000) Buildings . 145,000 145,000 Accumulated Depreciation: Buildings . (37,000) (28,000) Land . 40,000 25,000 Intangibles . 8,000...
(Balance Sheet) Presented below is the trial balance of Hightower Corporation at December 31, 2020.    Debit   ...
(Balance Sheet) Presented below is the trial balance of Hightower Corporation at December 31, 2020.    Debit       Credit    Cash 295,000 Sales Revenue $12,150,000 Debt Investments (trading) (at cost, $218,000) 230,000 Cost of Goods Sold 7,200,000 Debt Investments (long-term) 448,000 Equity Investments (long-term) 416,000 Notes Payable (short-term) 135,000 Accounts Payable 682,000 Selling Expenses 3,000,000 Investment Revenue 95,000 Land 390,000 Buildings 1,560,000 Dividends Payable 204,000 Accrued Liabilities 144,000 Accounts Receivable 652,000 Accumulated Depreciation–Buildings 228,000 Allowance for Doubtful Accounts 38,000 Administrative Expenses 1,350,000 Interest...
The balance sheet at December 31, 2021, for Nevada Harvester Corporation includes the liabilities listed below:...
The balance sheet at December 31, 2021, for Nevada Harvester Corporation includes the liabilities listed below: 11% bonds with a face amount of $38 million were issued for $38 million on October 31, 2012. The bonds mature on October 31, 2032. Bondholders have the option of calling (demanding payment on) the bonds on October 31, 2022, at a redemption price of $38 million. Market conditions are such that the call is not expected to be exercised. Management intended to refinance...
The balance sheet at December 31, 2018, for Nevada Harvester Corporation includes the liabilities listed below:...
The balance sheet at December 31, 2018, for Nevada Harvester Corporation includes the liabilities listed below: A. 11% bonds with a face amount of $49 million were issued for $49 million on October 31, 2009. The bonds mature on October 31, 2029. Bondholders have the option of calling (demanding payment on) the bonds on October 31, 2019, at a redemption price of $49 million. Market conditions are such that the call is not expected to be exercised B. Management intended...
The long-term liabilities section of CPS Transportation’s December 31, 2020, balance sheet included the following: (FV...
The long-term liabilities section of CPS Transportation’s December 31, 2020, balance sheet included the following: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) a. A lease liability with 15 remaining lease payments of $38,000 each, due annually on January 1: Lease liability $ 289,031 Less: current portion 9,097 $ 279,934 The incremental borrowing rate at the inception of the lease was 11%...
Riggs Corporation has the following balance sheet information at December 31, 2016. Current liabilities $ 800,000...
Riggs Corporation has the following balance sheet information at December 31, 2016. Current liabilities $ 800,000 Convertible bonds ($1,000 par, 5%) 2,000,000 Common stock ($1 par, 300,000 shares issued 300,000 Additional paid-in capital 2,100,000 Retained earnings 3,230,000 Treasury stock (43,000 shares) (1,161,000 ) Total liabilities and shareholders’ equity $ 7,269,000 The convertible bonds were issued at par in 2014 and are convertible into Riggs’s common stock at a ratio of 15 shares of stock to 1 bond. In its December...
Riggs Corporation has the following balance sheet information at December 31, 2016. Current liabilities $ 800,000...
Riggs Corporation has the following balance sheet information at December 31, 2016. Current liabilities $ 800,000 Convertible bonds ($1,000 par, 5%) 2,000,000 Common stock ($1 par, 300,000 shares issued 300,000 Additional paid-in capital 2,100,000 Retained earnings 3,230,000 Treasury stock (43,000 shares) (1,161,000 ) Total liabilities and shareholders’ equity $ 7,269,000 The convertible bonds were issued at par in 2014 and are convertible into Riggs’s common stock at a ratio of 15 shares of stock to 1 bond. In its December...
ABC CORPORATION Balance Sheet Year Ended December 31 (in $ millions) Assets 2006 2005 Liabilities &...
ABC CORPORATION Balance Sheet Year Ended December 31 (in $ millions) Assets 2006 2005 Liabilities & Stockowner’s Equity 2006 2005 Current Assets Current Liabilities Cash 22.2 19.5 Accounts Payable 39.2 24.5 Accounts Receivables 18.5 13.2 Notes Payable / Short-Term Debt 4.5 3.2 Inventories 27.2 14.3 Current Maturities of Long-Term Debt 13.3 12.3 Other Current Assets 2.0 1.0 Other Current Liabilities 8.0 4.0 Total Current Assets 69.9 48.0 Total Current Liabilities 65.0 45.0 Long Term Assets Long-Term Liabilities Land 22.2 20.7...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT