BUS 251 Lecture Notes - Loyalty Program, Matching Principle, Gross Profit

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Steve Gibson

Document Summary

The note has a nine-month maturity; therefore the entire amount of the principal, ,000, should be presented as a current liability. The company should also accrue interest expense for the four month period of ,667. (,000 x 8% x. This amount would be presented as interest payable in the current liabilities section of the statement of financial position: the current portion of the debt ,000 would be reported as a current liability. The remainder ,000 would continue to be reported as long term: 1. Assuming there was no balance in the account at the beginning of the year, the current liability would be ,000: the company should record a warranty liability of ,000 (10,000 x 3% x ). If the ,000 which was spent during the year related to the current year"s sales, then this amount would be deducted from the liability which was set up.