The acid-test ratio is the ratio of current assets less inventories to current liabilities. Comment 0 Step 5 of 8 Analysis: The due amount of interest is for last quarter, which is December to February The liquidity of the company may be affected due to such increase in asset retirement liability.
Journal Any sort of expense is nominal in nature.
Comment 0 Step 3 of 8 Accounting of loan: It means each current liability has a back-up of 1. The company should allocate such liability over the life of the facility that is 10 years.
The current ratio is the ratio of current assets to current liabilities. The standard current ratio is 2: One year means 4 quarters.
The liquidity of the company may be affected due to such increase in interest payable. Comment 0 Step 2 of 8 Analysis: The current ratio is the ratio of current assets and current liabilities.
It means each current liability has a back-up of a current asset. Comment 0 Step 7 of 8 Analysis: It means the current asset is always twice greater than current liability to become a healthy liquidity company. The company credited cash since the amount is paid.
Step 1 of 8 Accounting of warranties: Since the current liability reduces, the current ratio will be increased, which strengthens the liquidity of the company.
The company provides 2-year warranty. See the quarterly interest amount below.
The liquidity of the company may be affected due to such increase in warranty liability. Therefore we should debit remediation expense and credit the asset retirement liability for showing obligation.
Therefore we should divide the above amount by 4. The standard acid-test ratio is 1: Therefore the cost of such warranties is covered by the receiving amount.
Therefore we should debit interest expense and credit the liability of interest payable since the amount is not yet paid.Access Intermediate Accounting 15th Edition Chapter 13 solutions now.
Our solutions are written by Chegg experts so you can be assured of the highest quality! To aid faculty in this endeavor, we have labeled each question, exercise and problem in Intermediate Accounting, 5e with the following AACSB learning skills: Questions Chapter 13 solutions - intermediate accounting 2.
Uploaded by. johnson_ Chapter 13 Solutions. Uploaded by. Jesse Brockway. ACCT Intermediate Accounting Chap 1/5(1). CHAPTER 13 Corporations: Organization and ASSIGNMENT CHARACTERISTICS TABLE Problem Number Description Difficulty Level Time Allotted (min.) 1A Journalize stock transactions, post, and prepare Explain the accounting for treasury stock.
Q Q Q E Intermediate Accounting, Problem Solving Survival Guide (Chapters ) / Edition 13 INTERMEDIATE ACCOUNTING by Kieso, Weygandt, and Warfield is, quite simply, the standard by which all other intermediate accounting texts are measured.
Chapter 13 Solutions 1. Chapter 13 The Statement of Cash Flows ANSWERS TO QUESTIONS 1.
The income statement reports revenues earned and expenses incurred during a period of time. It is prepared on an accrual basis.
Financial Accounting, 3/e 2. 5. Cash inflows from operating activities include cash sales, collections on.
Problem (Time minutes) Purpose—to provide the student with a basic problem in accounting for premium offers. or transmission of this page is strictly prohibited.
postage costs are also incurred.5/5(6).Download