Indicate the way each of the items listed below should be reported in a balance
ID: 2530684 • Letter: I
Question
Indicate the way each of the items listed below should be reported in a balance sheet at December 31, 2018 Item Reporting Method 1. 2. 3. 4. 5. Commercial paper. Noncommitted line of credit. Customer advances Estimated quality-assurance warranty cost. Accounts payable Long-term bonds that will be callable by the creditor in the upcoming year unless an existing violation is not corrected (there is a reasonable possibility the violation will be corrected within the grace period). 7. Note due March 3, 2019 8. Interest accrued on note, Dec. 31, 2018. 9 Short-term bank loan to be paid with proceeds of sale of commorn stock. A determinable gain that is contingent on a future event that appears extremely likely to occur in three months Unasserted assessment of back taxes that probably will be 11. asserted, in which case there would probably be a loss in six months Unasserted assessment of back taxes with a reasonable 12. possibility of being asserted, in which case there would probably be a loss in 13 months A determinable loss from a past event that is contingent on a future event that appears extremely likely to occur in three months 14. Note payable due April 4, 2021 Long-term bonds callable by the creditor in the upcoming year that are not expected to be called.Explanation / Answer
1. Short term borrowing
2. Disclosure note only
3. Other Current Liability
4. Short term provisions
5. Current liability - Trade Payables
6. Crrent liability
7. Current liability
8. Other Current Liability
9. Long term borrowing
10. It is a contingent asset. Hence it should not be recorder unless actually earned. However it can be disclosed in Notes to Accounts since it is probable.
11. Current liability
12. Not reported
13. Current liability
14. Long term liability
15. Current liability