Exercise 5-8 Flounder Corporation is preparing its December 31, 2017, balance sh

Question

Exercise 5-8 Flounder Corporation is preparing its December 31, 2017, balance sheet. The following items may be reported as either a current or long term liability. 1. On December 15, 2017, Flounder declared a cash dividend of $2.30 per share to stockholders of record on December 31. The dividend is payable on Janu 15, 2018. Flounder has issued 1,000,000 shares of common stock, of which 50,000 shares are held in treasury. $28,571,500 every September 30, beginning September 30, 2018. advances of $27,486,000 should be recognized in income. 2. At December 31, bonds payable of $114,286,000 are outstanding. The bonds pay 12% interest every September 30 and mature in installments of 3. advancen bor 31, 0,00 shoinid bcen (Uniearmed Revenuee$12,48,00. Duling 2017, Founder collected $32,673,00 of customer advances, For each item above, indicate the dollar amounts to be reported as a current liability and as a long-term liabilty, if any Reported as 1. Dividends payable 2. Bonds payable (September 30, 2018 installment) Bonds payable (Other than September 30, 2018 installment) 3. Customer advances

Explanation / Answer

Reported as 1 Dividends payable 2185000 Current Liability =(1000000-50000)*2.3 2 Bonds payable(Sep 30 2018 installment) 28571500 Current Liability Bonds payable(Other than Sep 30 2018 installment) 85534500 Long-term liability =114286000-28751500 Interest payable 3428580 Current Liability =114286000*12%/12*3 3 Custoemr advances 17672000 Current Liability =12485000+32673000-27486000

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