-Give a numerical example of: Current liabilities. Long-term liabilities I post...
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Accounting
-Give a numerical example of:
Current liabilities.
Long-term liabilities
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Q2- Give a numerical example of: A) Current liabilities Sep 2.2012, Mohammad borrows 30000 from ABC bank. The note bears interest at 6% per year. Principal and interest are due in 90 days. DR CR Sep2 cash 30000 Notes payable 30000 Notes payable 30000 Interest expense 450 Cash 20450 B) Long-term liabilities (2 marks). Company AKK on Jan 1, 2013 par value - 2000000 Issue price - 82.6405%, stated interst rate=10%. Market interest rate=12%. interest dates = 6/30 and 12/31 bond date Jan 1, 2013, DR CR Jan.1 Cash 826405 1173595 Discount on bonds payable Bonds payable 2000000 June 30 Bond interest expense 217360 Discount on bonds payable 117360 100000
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