Question

Up to 50 Off Sale Homework (due day 7] Saved Help SEX Submit Check my work Van Rushing Hunting Goods' fiscal year ends on December 31. At the end of the 2021 fiscal year, the company had notes payable of $13.5 million due on February 8, 2022. Rushing sold 4.5 million shares of its $0.25 par, common stock on February 3, 2022, for $117 million. The proceeds from that sale along with $1.8 million from the maturation of some 3-month CDs were used to pay the notes payable on February 8. Through his attorney, one of Rushing's construction workers notified management on January 5, 2022, that he planned to sue the company for $1 million related to a work site injury on December 20, 2021. As of December 31, 2021, management had been unaware of the injury, but reached an agreement on February 23, 2022, to settle the matter by paying the employee's medical bills of $80,000 Rushing's financial statements were finalized on March 3, 2022 Required: 1. What amount(s) if any, related to the situations described should Rushing report among current liabilities in its balance sheet at December 31, 2021? 2. What amount(s) if any, related to the situations described should Rushing report among long-term liabilities in its balance sheet at December 31, 2021? 3. What amount(s) if any, related to the situations described should Rushing report among current liabilities and long-term liabilities in its balance sheet at December 31, 2021 if the settlement agreement had occurred on March 15, 2022, instead? 4. What amount(s) if any, related to the situations described should Rushing report among current liabilities and long-term liabilities in its balance sheet at December 31, 2021 if the work-site injury had occurred on January 3, 2022, instead? (For all requirements, enter your answers in whole dollars.) < Prev 6 of 6 Next SUS

Answer 1

1. Current liabilities = 1,800,000 + 80,000 = 1,880,000

2. Long term liabilities = 11,700,000

3. Current liability = 1,800,000

Long term liability = 11,700,000

4. Current liability = 1,800,000

Long term liability = 11,700,000