Dollar amounts to be reported as a current liability


Smith Corporation is preparing its December 31, 2009, balance sheet. The following items may be reported as either a current or long-term liability.

Instructions :

For each item above indicate the dollar amounts to be reported as a current liability and as a long-term liability, if any.

1. On December 15, 2009, Smith declared a cash dividend of $2.17 per share to stockholders of record on December 31. The dividend is payable on January 15, 2010. Smith has issued 1,000,000 shares of common stock, of which 50,000 shares are held in treasury

2. At December 31, bonds payable of $116,897,000 are outstanding. The bonds pay 12% interest every September 30 and mature in installments of $29,958,000 every September 30, beginning September 30, 2010.

3. At December 31, 2008, customer advances were $13,602,000. During 2009, Smith collected $30,303,000 of customer advances, and advances of $26,197,000 were earned.

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Managerial Accounting: Dollar amounts to be reported as a current liability
Reference No:- TGS083462

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