I need help.Thanks SING CODIFICATION (plus $20,000 cash it already has on hand)
ID: 2554956 • Letter: I
Question
I need help.Thanks
SING CODIFICATION (plus $20,000 cash it already has on hand) to repay the note payable on March 6. The head accountant says "I'm not sure how to classify the $100,000 note payable on the December 31, 2016, balance sheet. Check this out for me." Directions Research the related generally accepted accounting principles and prepare a short .9 Researching GAAP Situation You are the assistant accountant for Tyler Corporation. It is mid-January 2017 and youu are helping to prepare Tyler's balance sheet for December 31, 2016. Tyler will publish this balance sheet on March 1, 2017, after the auditors have completed their work. Tyler has a S100,000 note payable that was issued in 2015 and that is due March 6, 2017. On January 5, 2017, Tyler sold 2,000 shares of its S10 par common stock for $80,000. Its intent is to use these proceeds memo to the head accountant that explains how Tyler should report the $100,000 note payable on its December 31, 2016, balance sheetExplanation / Answer
The note payable of $100,000 is due on March 6,2017.
Financial statements are being prepared for the period ending December 31, 2016.
That implies that the note payable are due within 12 months from the date of Balance sheet.
Hence as per GAAP, the said notes payable are to be classified as Current Liability in the Balance sheet of December 31, 2016.
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