Respuesta :
Answer:
1. Customer Advances (will be matched to Current Liabilities).
2.Non-committed line of Credit (will be matched to disclosure note only).
3.Commercial Paper (will be matched to Current Liabilities).
4.Note due June 9 2019 (will be matched to Current Liabilities).
5.Accounts Payable (will be matched to Current Liabilities).
6.Long-term bonds callable in 2019 (will be matched to Current liabilities)
7.Estimated cost of Quality Assurance Warranty (will be matched to Current liabilities for expected claims within one year and long term liabilities for expected claims falling due after 1 year)
8.Interest accrued on note, Dec. 31, 2018. (will be matched to Current Liabilities)
9.Short-term bank loan to be paid with proceeds of sale of common stock (will be matched to Current Liability)
10.A material gain contingent on a future event that appears extremely likely to occur in three months (will be matched to disclosure note only)
Explanation:
Customer Advances (will be matched to Current Liabilities).
These are advance payment of Cash made by our Customers for the Purchase of our goods also called Prepayments. Usually such purchases occur within a financial year of Trading and therefore qualifies as a current liability.
Non-committed line of Credit (will be matched to disclosure note only).
This is a bank facility that hasn't been utilized. Hence it is only reasonable to show as a disclosure note only for information purposes
Commercial Paper (will be matched to Current Liabilities).
Commercial Papers are usually short term in nature. They are unsecured debts issued by companies to cover for its working capital requirements. as such we will classify these as Current Liabilities
Note due June 9 2019 (will be matched to Current Liabilities).
Although not falling due within the current financial year 2018, it falls due within 1 year from the Balance Sheet date. Thus it qualifies to be regarded as a Current Liability
Accounts Payable (will be matched to Current Liabilities).
These are payments due Vendors for transactions occurring in the outgoing financial year. The Payment terms for such services or supplies vary by company, it ranges between 30 days to 120 days in most instances however.
Long-term bonds callable in 2019 (will be matched to Current liabilities)
Even though the Bond has been classified as Long term, it falls callable within 2019, meaning it has a not more than 1 year life span to expire. it will be classified under Current liabilities as long-term debt falling due within 1 year.
Long-term bonds callable in 2019, but not expected to be called (will be matched to Current liabilities)
Falling due within one year gives us an indication it is a current liability. However going by the information it will very likely not be called, we may indicate this extra information in the notes disclosure but retain the liability under Current Liability.
Estimated cost of Quality Assurance Warranty (will be matched to Current liabilities for expected claims within one year and long term liabilities for expected claims falling due after 1 year)
Where it can be reasonably estimated what the warranty expense would be, the Business should accrue in 2018 the likely warranty liability due with respect to 2018.
Where Warranty granted exceeds current year, a warranty provision will have to be made covering the duration of Warranty. If extending beyond 1 year, we should then classify these as Long term liability
Interest accrued on note, Dec. 31, 2018. (will be matched to Current Liabilities)
These relate to interest due up to Dec 31 2018 on note issued.
Short-term bank loan to be paid with proceeds of sale of common stock (will be matched to Current Liability)
It is a short term loan, meaning it will be due for payment within a short period of less than 1 year.
The way it will be paid (through sales of Common Stocks) is an information the Shareholders need have as a disclosure note since the sales hasn't occurred.
A material gain contingent on a future event that appears extremely likely to occur in three months (will be matched to disclosure note only)
The prudence concepts precludes a business from recognizing a gain before it is realized, hence the Business can only note this in its disclosure note giving details to shareholders of pending gains.
Answer: (a) current liability (b ) Disclosure note only (c) current liability (d) current liability (e) current liability (f) current liability (g) current liability (h) current liability (i) current liability (j) Long term Liability (k) Disclosure note only
Explanation:
Balance sheet is a statement prepared at the end of each trading period of a business which consist of the summary of debit and credit balance of assets and liabilities in the ledger accounts. It is prepared in order to know the financial position or the strength of the business. The important terms in the balance sheet includes Long term Liabilities which are the debts that are payable in the near future that is not within a year such as mortgage, other terms are the current liabilities which are the debts which must be paid quickly and certainly within or about a year examples of such are outstanding expenses, loans, bill payable and sundry creditors. We also have fixed asset which are the properties of a durable nature in an organization likely to be retained for a considerable number of period. Also we have current asset which are the resources used in the trading activities of the business. However, a disclosure note is not in the balance sheet .it is simply a note which shows certain information pertaining to the business which cannot be shown in the balance sheet such as the business accounting policies such as method of deprecation, investment, the values of their fixed asset and so on. I will therefore match the items in the balance sheet as follows
(a) customer Advances is a current liability
(b) Non committed line of credit is a Disclosure note only
(c) Commercial paper is a current liability
(d) Note due June 9, 2019 is a current liability
(e) Account payable is a current liability
(f) 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 ) is a current liability
(g) Long term bond callable by the creditor in the upcoming year that are not expected to be called is a current liability
(h) Estimate cost of quality assurance is a current liability
(i) Interest accrued on note is a current liability
(j) December 31,2018 short term bank loan to be paid with proceed of sale of common stock is a Long term Liability
(k) A material gain contingent on a future event that appears extremely likely to occur in 3 months is a Disclosure note only
