Question

In: Accounting

1)Current Portion of Long-Term Debt Connie's Bistro, Inc. reported the following information about its long-term debt...

1)Current Portion of Long-Term Debt

Connie's Bistro, Inc. reported the following information about its long-term debt in the notes to a recent financial statement (in millions):

Long-term debt consists of the following:

	December 31
	Current Year	Preceding Year
Total long-term debt	$654,000	$359,700
Less current portion	(189,700)	(176,600)
Long-term debt	$464,300	$183,100

a. How much of the long-term debt was disclosed as a current liability on the current year’s December 31 balance sheet?

Current Portion of Long-Term Debt

Connie's Bistro, Inc. reported the following information about its long-term debt in the notes to a recent financial statement (in millions):

Long-term debt consists of the following:

	December 31
	Current Year	Preceding Year
Total long-term debt	$654,000	$359,700
Less current portion	(189,700)	(176,600)
Long-term debt	$464,300	$183,100

a. How much of the long-term debt was disclosed as a current liability on the current year’s December 31 balance sheet?
$fill in the blank 1

b. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-term debt?
$fill in the blank 2

c. If Connie's Bistro did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year?
$fill in the blank 4

b. How much did the total current liabilities change between the preceding year and the current year as a result of the current portion of long-term debt?
$fill in the blank 2

-Increase?

or

-Decline?

c. If Connie's Bistro did not issue additional long-term debt next year, what would be the total long-term debt on December 31 of the upcoming year?
$fill in the blank 4

2)Entries for Installment Note Transactions

On the first day of the fiscal year, Shiller Company borrowed $22,000 by giving a five-year, 12% installment note to Soros Bank. The note requires annual payments of $6,207, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $2,640 and principal repayment of $3,567.

Journalize the entries to record the following:

a1. Issued the installment note for cash on the first day of the fiscal year. If an amount box does not require an entry, leave it blank.

Fill in the blank



Fill in the blank? question 1	fill in the blank? Question 2	fill in the blank? Question 3
Fill in the blank? Question 4	fill in the blank? Question 4	fill in the blank? Question 5

a2. Paid the first annual payment on the note. If an amount box does not require an entry, leave it blank.

		fill in the blank? Question 6	fill in the blank? Question 7
		fill in the blank? Question 8	fill in the blank? Question 9
		fill in the blank? Question 10	fill in the blank? Question 11

b. How would the notes payable be reported on the balance sheet at the end of the fiscal year?

Fill in Question 12

Expert Solution

ekkarill92 answered 2 years ago

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