XYZ Corporation is preparing its December 31, 2021, balance sheet. The following items may be reported...

XYZ Corporation is preparing its December 31, 2021, balance sheet. The following items may

be reported as either a current or long-term liability.

 1. On December 15, 2021, XYZ declared a cash dividend of $2.50 per share to stockholders

of record on December 31. The dividend is payable on January 15, 2022. XYZ 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 $100,000,000 are outstanding. The bonds pay 12%

interest every September 30 and mature in installments of $25,000,000 every September 30,

beginning September 30, 2022.

 3. At December 31, 2020, customer advances were $12,000,000. During 2021, XYZ

collected $30,000,000 of customer advances; advances of $25,000,000 should be recognized

in income.

Instructions

For each item above, indicate the dollar amounts to be reported as a current liability and as a

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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