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Task 6

Accounting

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Task 6.1: Liability transactions

Instructions

After you have read and understood the learning resources in this module, work through the following exercises using Chapter 11, “Current Liabilities and Payroll,” from the textbook. Do it in excel.

 

Make the corresponding wage entries to report short-term liabilities.

 

1-Make the entries to the journal.

2-Journalizes the adjustment entries for each accrued expense at the end of the year. The cost of the product warranty is $ 7,000.

1. Pay the remaining interest on the Home Depot account.

 

Date	Transactions
February 2	Merchandise was purchased on credit for $ 310,000 with a term of n / 45 in Pueblo Caribe.
March 4	Aires Caribe provided Pueblo Caribe with a 5% note for $ 120,000 with a 30-day credit term.
May 6	Pueblo Caribe paid the amount of the March 4 note.
May 10	Consoles were purchased from Air Wholesale for $ 75,000 on a 90 day note at a 4% discount. With monthly payments of 25,000.
June 12	A 30-day loan (short-term note / note payable) with 3% for $ 240,000 was requested from Banco del Pueblo.
June 15	The overdue amount of the May 10 transaction was paid. A customer bought $ 2,000 worth of merchandise for cash.
July 18	The customer who purchased merchandise on the 15th returned $ 500 worth of merchandise because it was defective. A customer made a purchase for $ 3,500 with a term of 3/40 n / 60
August 20	The customer who made the purchase on July 18 paid in full with the corresponding discount.
September 30	The overdue amount of the Banco del Pueblo note dated June 12 was paid.
September 30	The overdue amount of the transaction on May 10 was paid.
November 4	Tools were purchased at Home Depot for $ 75,000. $ 12,000 was paid and the remainder was divided into series of ten into 3% notes of $ 6,300 each maturing at 45-day intervals.
December 4	The first of the notes they took on November 4 was paid to Home Depot.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Task 6.2-Report of long-term liabilities

Instructions

After having read and understood the learning resources in this module, work through the following exercises using chapter 11, “Current liabilities and payroll,” from the textbook. Do in excel.

 

Part 1. Answer the following questions of the case presented.

 

Los Cidros reported the following information on long-term debt:

 

	Current year	Last year
Total long-term debt	$14,578 millions	$18,564 millions
Minus the current portion	(1,290)millions	(1,540) millions
Long term debts	13,288 millions	17,204 millions

 

 

1. Determine how much total current liabilities changed between the previous year and the current year as a result of the long-term debt portion. Explain your answer in your own words.
2. Indicates the balance of the debt the following year if Los Cidros does not acquire another long-term debt in the next few years.

 

Part 2. Do the following exercises.

 

1. Bellezas del Mar purchased inventory from a large supplier. The supplier offered him a credit term of 3/10, n / 30. Indicate if this debt is an example of an account payable, long-term or short-term debt.
2. Adopciones y Más drew on 8 annual notes that amounted to $ 250,000 to be paid when the office it is building is completed. The company intends to pay $ 75,000 next year. What is considered that portion?
3. Pet Supply Co. issued a 65-day 7% note for $ 110,000 to Pets Co. Performs the payroll entry of the note and the entry of the note payment with interest.
4. Librería Especial issued an 80-day note at 11% for $ 2,000 in arrears. Make the salary entries of the note and the entry with the accumulated interest.