Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. There are some questions as to the proper classification of the following items: a. $66,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2025. b. Prepaid rent of $40,000, covering the period January 1, 2022, through December 31, 2023. c. Notes payable of $232,000. The notes are payable in annual installments of $36,000 each, with the first installment payable on March 1, 2022. d. Accrued interest payable of $28,000 related to the notes payable. e. Investment in equity securities of other corporations, $112,000. Cone intends to sell one-half of the securities in 2022. Required: Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported. CONE CORPORATION Balance Sheet (Partial) At December 31, 2021 Assets
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- On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.Cone Corporation is in the process of preparing its December 31, 2024, balance sheet. There are some questions as to the proper classification of the following items: a. $55,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. b. Prepaid rent of $29,000, covering the period January 1, 2025, through December 31, 2026. c. Notes payable of $210,000. The notes are payable in annual installments of $25,000 each, with the first installment payable on March 1, 2025. d. Accrued interest payable of $17,000 related to the notes payable is due June 30, 2025. e. Investment in equity securities of other corporations, $90,000. Cone intends to sell one-half of the securities in 2025. Required: Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported. CONE CORPORATION Balance Sheet (Partial) At December 31, 2024 Assets Current assets: Investment in equity securities Prepaid rent Long-term investments: $…Cone Corporation is in the process of preparing its December 31, 2024, balance sheet. There are some questions as to the proper classification of the following items: a. $68,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. b. Prepaid rent of $42,000, covering the period January 1, 2025, through December 31, 2026. c. Notes payable of $236,000. The notes are payable in annual installments of $38,000 each, with the first installment payable on March 1, 2025. d. Accrued interest payable of $30,000 related to the notes payable is due June 30, 2025. e. Investment in equity securities of other corporations, $116,000. Cone intends to sell one-half of the securities in 2025. Required: Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported. X Answer is not complete. CONE CORPORATION Balance Sheet (Partial) At December 31, 2024 Current assets: Prepaid rent Investment in equity securities…
- Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. There are some questions as to the proper classification of the following items: $50,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2025. Prepaid rent of $24,000, covering the period January 1, 2022, through December 31, 2023. Notes payable of $200,000. The notes are payable in annual installments of $20,000 each, with the first installment payable on March 1, 2022. Accrued interest payable of $12,000 related to the notes payable. Investment in equity securities of other corporations, $80,000. Cone intends to sell one-half of the securities in 2022. Required:Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported.Cone Corporation is in the process of preparing its December 31, 2024, balance sheet. There are some questions as to the proper classification of the following items: $52,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. Prepaid rent of $26,000, covering the period January 1, 2025, through December 31, 2026. Notes payable of $204,000. The notes are payable in annual installments of $22,000 each, with the first installment payable on March 1, 2025. Accrued interest payable of $14,000 related to the notes payable is due June 30, 2025. Investment in equity securities of other corporations, $84,000. Cone intends to sell one-half of the securities in 2025. Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported.At December 31, 2020, Stellar Corporation has the following account balances: Bonds payable, due January 1, 2029 Discount on bonds payable Interest payable $1,900,000 102,000 # 92,000 Show how the above accounts should be presented on the December 31, 2020, balance sheet, including the proper classifications. (Enter account name only and do not provide descriptive information.) Stellar Corporation Balance Sheet (Partial) $ tA
- Lavender Company had the following information related to its current liabilities for the year ended, December 31, 2021. The results of your inquiry and observation were summarized below: Notes Payable arising from 3 year bank loans, on which a securities valued at 1,000,000 have been pledge as security, due on December 31, 2022. (Note 1) Accounts payable, net of debit balances of P100,000 (Note 2) Accrued Payroll (Note 3) PhilHealth, and PAG-IBIG payable SSS payable Employee income tax withheld Bonus and profit sharing payable (Note 4) Liability for income taxes (Note 5) Cash dividends payable Share dividend payable Dividend in arrears on preference shares Estimated liability for damages 800,000 3,160,000 240,000 25,000 16,000 25,000 ? 300,000 120,000 150,000 200,000 130,000 The following audit notes were summarized by the audit staff: Note 1: Notes payable arising from bank loans The notes payable from bank loan is dated December 31, 2019 due on December 31, 2022 with annual interest…Use the following to answer questions 13 – 15: Presented below is a partial trial balance for the Princess Corporation at December 31, 2024. Account Title Debits Credits Cash & Equivalents 30,000 Cash restricted for the repayment of bonds payable 100,000 Accounts Receivable 195,000 Allowance for Doubtful Accounts 24,000 Notes Receivable (due November 1, 2025) 120,000 Interest Receivable (on notes receivable) 4,000 Raw Materials Inventory 36,000 Work in Process Inventory 38,000 Finished Goods Inventory 98,000 Marketable Securities 48,000 Prepaid Insurance (expires by June 30, 2025) 60,000 Land 100,000 Buildings 1,500,000 Equipment 400,000 Accumulated Depreciation – Buildings 740,000 Accumulated Depreciation – Equipment 230,000 Patents (net of amortization) 120,000 Unearned Revenue 48,000 Bonds Payable (mature on September 30, 2028) 500,000 Interest Payable (on bonds) 7,000 Accounts Payable 240,000 Salaries Payable 6,000 Additional…FINANCIAL ACCOUNTING (a) Compute the amount of interest during 2020, 2021, and 2022 for the following notes receivable; on april 30, 2020, BCDE lent $170,000 to Abbot on a two-years 7% note. (b) Which party has a (an) a. notes receivable b. notes payable c. interest revenue d. interest expense (c) How much total would BCDE collect if Abbot paid off early, say on November 30, 2020?
- Abardeen Corporation borrowed $136,000 from the bank on October 1, 2018. The note had an 7 percent annual rate of interest and matured on March 31, 2019. Interest and principal were paid in cash on the maturity date. Required What amount of cash did Abardeen pay for interest in 2018? What amount of interest expense was recognized on the 2018 income statement? What amount of total liabilities was reported on the December 31, 2018, balance sheet? What total amount of cash was paid to the bank on March 31, 2019, for principal and interest? What amount of interest expense was reported on the 2019 income statement?At December 31, 2020, Sarasota Corporation has the following account balances: Bonds payable, due January 1, 2029 Discount on bonds payable Interest payable $1,400,000 75,000 68,000 Show how the above accounts should be presented on the December 31, 2020, balance sheet, including the proper classifications. (Enter account name only and do not provide descriptive information.) Sarasota Corporation Balance Sheet (Partial) LA $The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its fiscal year, included the following account balances. Manufacturing's 2021 financial statements were issued on April 1, 2022. Accounts receivable Accounts payable 128 notes, payable to bank Mortgage note payable 95,500 40,600 655,000 1,283,000 Other information: a. The bank notes, issued August 1, 2021, are due on July 31, 2022, and pay interest at a rate of 12 %, payable at maturity. b. The mortgage note is due on March 1, 2022. Interest at 11% has been paid up to December 31 (assume 11% is a realistic rate). Manufacturing intended at December 31, 2021, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $312,000 in cash on the principal balance and refinanced the remaining $971,000. c. Included in the accounts receivable balance at December 31, 2021, were two subsidiary accounts that had been overpaid and had credit balances…