HomeworkLib
Question

Company set aside a certain amount of money to pay off a two-year long term loan....

Company set aside a certain amount of money to pay off a two-year long term loan. these cash are thus restricted. under which section of the balance sheet is this ‘cash restricted for future loan payment’ reported?

  1. Current assests

b.   non-current assets

  1. current liabilities
  2. stockholders equity

I COULDNT SEE THE WHOLE QUESTIONS SO SOME WORDS MAY NOT MAKE SENSE BUT ITS THE OVERALL IDEA OF THE QUESTION

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Certain amount of money is set aside for pay off a two year long term loan. Since the loan period is more than 12 months, it is not considered as a current liability. Similarly the amount set aside to pay this long term long is treated as non current assets.

Option b.

0 0
Add a comment
Know the answer?
Add Answer to:
Company set aside a certain amount of money to pay off a two-year long term loan....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Bonds are a long-term debt for corporations. By buying a bond, the bond-owner lends money to...

    Bonds are a long-term debt for corporations. By buying a bond, the bond-owner lends money to the corporation. The borrower promises to pay specified interest rate during the loans lifetime and at the maturity, payback the entire principle. In case of bankruptcy, bondholders have priority over stockholders for any payment distributions. Bonds = Debt...............Bondholders = Lenders Stock=Equity................Stockholders = OwnersCalculation: For purposes of this exercise, assume that UPS issues a new ten-year bond for 100,000 that will mature in 2027. The...

  • Total Loan amount: The total mortgage loan amount is the amount you borrow after paying your down payment. Here, we assumed that you would pay 20% of the home value (property value) as a down payment. 2. Months: The mortgage payment period is set to 30 ye

    Total Loan amount: The total mortgage loan amount is the amount you borrow after paying your down payment. Here, we assumed that you would pay 20% of the home value (property value) as a down payment. 2. Months: The mortgage payment period is set to 30 years. In terms of months, this is equivalent to 30 years multiplied by 12 months. We put our primary basis of payments in terms of months, which is why we need to convert everything...

  • 4. Introduction to the present value of money Under the concepts of the time value of...

    4. Introduction to the present value of money Under the concepts of the time value of money, you can determine the current, or present, value of a cash receipt or payment that will occur at some specified time in the future, given a specified rate of interest. This technique can be used to calculate the present value of a single or a series of future receipts or payments. Dakota and Gabriella are walking after class between the library and the...

  • MAJOR MEDICAL CENTER For the Major Medical Center financial statements on the following pages, complete the...

    MAJOR MEDICAL CENTER For the Major Medical Center financial statements on the following pages, complete the following: b. Review the financial statements. Search for unusual items. What things catch your eye on the balance sheet, operating statement, and cash flow statement? Major Medical Center Statements of Financial Position December 31 2018 2017 (In Thousands) Assets Current Assets Cash and cash equivalents $ 8,065 $9,005 Assets limited as to use—compensating balance for letters of credit 1,000 — Short-term investments 1,387 1,283...

  • STATEMENT OF FINANCIAL POSITION AS AT END OF YEAR 1 £000 £000 Non current assets Equipment...

    STATEMENT OF FINANCIAL POSITION AS AT END OF YEAR 1 £000 £000 Non current assets Equipment NBV 6.25 Current assets Inventory Receivables Cash 20.1 48.35 Total Assets 56.35 Non current liabilities Bank Loan Current Liabilities Payables: inventory Payables: admin 1.5 9.5 Equity Capital Reserves 4.85 22.85 Net Assets (Assets - Liabilities) 22.85 Note: The equipment purchased in year 1 had originally cost €10,000 with a useful life of 5 years, no residual value. The Straight line depreciation approach is used...

  • Ch 1 1. Given the following dat Dec 31 Year 2 Dec 31 Year 1 Total...

    Ch 1 1. Given the following dat Dec 31 Year 2 Dec 31 Year 1 Total liabilities S128,250 $120,000 Total stockholders oquity 95.000 80.000 compute the ratio of liabilities to stockholders' equity for each year Round to two decimal places 1.50 and 107, 11.35 and 1.50 respectively respectively 1.07 and 1.19. 1.1.19 and 1.35 respectively respectively The liabilities and stockholder's equity of a company are $132,000 and $244.000, respectively. Assets should equal SS188.00 $132.00 p $376,00 12.000 A financial statement...

  • 3. Using information in Note 8, compare the amount recorded for Wendy’s investment in TimWen at...

    3. Using information in Note 8, compare the amount recorded for Wendy’s investment in TimWen at December 30, 2012 with Wendy’s 50% share of TimeWen’s equity at December 30, 2012. What accounts for the difference between these two amounts? Show calculations to reconcile the two figures. 4. Consider the information disclosed in Note 8 regarding Wendy’s investment in the TimWen Joint Venture. a. How did Wendy’s equity method investment in TimWen affect their earnings before taxes in 2012 and 2011?...

  • hi, I need help about it: Balance Sheet Project Description: A balance sheet is a section of an annual t...

    hi, I need help about it: Balance Sheet Project Description: A balance sheet is a section of an annual tinancial report that presents the Company's osscts and liabilities. It provides the users of this statement key measures of the Company's liquidity and its ability to meet its current and future obligations as well as summarizes how the assets and liabilities are presented. Ta complete this section, answer the following required question using information taken from the balance sheet for year...

  • need help putting together statement of cash flows! plus some... forgot these... apologies here is the...

    need help putting together statement of cash flows! plus some... forgot these... apologies here is the whole front and back of the paper. not entirely sure what you mean by the "amounts" but hope its here! thanks! need the statement of cash flows filled out for the year ending september 30, 2018. this was the first yellow chart. i also need the statement of cash flows for the year ending December 31, 2018 filled ou. this was the second yellow...

  • Web Wizard, Inc., has provided information technology services for several years. For the first two months...

    Web Wizard, Inc., has provided information technology services for several years. For the first two months of the current year, the company has used the percentage of credit sales method to estimate bad debts. At the end of the first quarter, the company switched to the aging of accounts receivable method. The company entered into the following partial list of transactions during the first quarter. During January, the company provided services for $47,000 on credit. On January 31, the company...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT