Close Icon
Info
Warning
Danger
 / 
 / 
 / 
Comprehensive Liability Problem-Balance Sheet Presentation Balzac Inc has been producing

Question : Comprehensive Liability Problem-Balance Sheet Presentation Balzac Inc has been producing : 6823

Comprehensive Liability Problem-Balance Sheet Presentation Balzac Inc has been producing quality children's apparel for more than 25 years. The company's fiscal year runs from April 1 to March 31. The following information relates to the obligations of Balzac as of March 31, 2015. Bonds Payable -Balzac issued s5,000,000 of 11% bonds on July 1, 2009, at 96 which yielded proceeds of S4,800,000. The bonds will mature on July 1, 2019. Interest is paid semiannually on July 1 and January1. Balzac uses the straight-line method to amortize the bond discount. Notes Payable-Balzac has signed several long-term notes with financial institutions and insurance companies. The maturities of these notes are given below. The total unpaid interest for all of these notes amount to $210,000 on March 31, 2015. 200,000 April 2015 July 1, 2015 October 1, 2015 150,000 January 1, 2016 600,000 March 31, 2017 500,000 April 1, 2017 March 31, 2018 700,000 April 1, 2018-March 31, 2019 400,000 April 1, 2019 March 31, 2020 April 1, 2020-March 31, 2021 $3,500,000 Estimated Warranties Balzac has a one-year product warranty on some selected items in its product line. The estimated warranty liability on sales made during the 2013-2014 fiscal year and still outstanding as of March 31. 2014 amounted to $84,000. The warranty costs on sales made from April 1, 2014 through March 31, 2015 are estimated at $210,000. The actual warranty costs incurred during the current 2014-15 fiscal year are as follows: Warranty claims honored on 2013-14 sales Warranty claims honored on 2014-15 sales $179,000 Total warranty claims honored Other Information: 1. Trade payables -Accounts Payable for supplies, goods and services amounted to $370,000 as of March 31, 2015. 2. Payroll Related Items-outstanding obligations related to Balzac'spayroll as ofMarch 31, 2015 are: $150,000 Accrued Salaries and Wages FICA Taxes 22,000 State & Federal Income Tax Withheld Employees 25.000 Other Payroll Deductions 3. Taxes The following taxes incurred but not due until the next fiscal year are: State and Federal Income Taxes $310,000 Property Taxes 125,000 Sales and Use Taxes 182,000

 

Solution
5 (1 Ratings )

Solved
Finance 1 Year Ago 107 Views
This Question has Been Answered!

Unlimited Access

Explore More than 2 Million+
  • Textbook Solutions
  • Flashcards
  • Homework Answers
  • Documents
Signup for Instant Access!

Ask an Expert

Our Experts can answer your tough homework and study questions
275782 Finance Questions Answered!
Post a Question