Job shops tend to be __________ while continuous processes tend to be __________. Small-scale and flexible; Large-scale and infl

Answer:

Explanation:

Current liabilities refer to obligations due within one year or less.

The classification is as follows:

a. A note payable for $100,000 due in 2 years. = Not classified as a current liability, as it is due in 2 years and classified as long-term liability.

b. A 10-year mortgage of $300,000 to be paid in ten annual payments of $30,000. = Only the first payment is a current liability; the rest are long-term liabilities.

c. An interest payment of $15,000 on the mortgage. = This is a current liability since it is due within one year.

d. Accounts payable of $60,000. = This is also a current liability because it is due within one year.

Current liabilities are recorded on the liability side of the balance sheet.

Answer:

The answer is $59.50.

Explanation:

The calculations based on the scenario are as follows:

Profit on futures price = After futures price - before futures price

$63.50 - $59

= $4.50

Thus, the effective price that the company pays can be calculated using this formula:

Effective price paid = Spot price in July - Gain on futures price

= $64 - $4.50

= $59.50

Answer:

In a non-monetary exchange that lacks commercial substance, a company should note the acquired asset using the same book value as that of the asset it exchanged.

ABC's journal entry:

Dr Cash 25,000

Dr Building - new 75,000

Dr Accumulated depreciation building - old 60,000

    Cr Building - old 150,000

    Cr Gain on the exchange 10,000*

As the cash received is less than 25% of the total value in the exchange, only a partial gain attributable to the cash must be acknowledged. The partial gain is derived by deducting the cash received from the asset's fair market value. Here, the fair market value was $100,000 with a carrying value of $90,000, leading to a recognized gain of $100,000 - $90,000 = $10,000. Consequently, the new carrying value needs to be adjusted to align with the fair market value minus cash received ($100,000 - $25,000 = $75,000).

XYZ's journal entry:

Dr Building - new 105,000

Dr Accumulated depreciation building - old 15,000

    Cr Building - old 95,000

    Cr Cash 25,000

Considering the absence of commercial substance in the transaction and that XYZ did not receive cash, it must register the new building's value by combining the old building's carrying value with the cash paid to ABC (=$80,000 + $25,000=$105,000).