Current Liabilities and Contingencies

Table of Contents: 00:00 - BUS512MIntroduction to Liabilities: Economic Consequences, Current Liabilities and Contingencies 00:20 - Reporting Liabilities on the Balance Sheet: Perspectives 02:43 - Liabilities 05:38 - Review: Definitely Determinable, Estimated, Commitment, Contingent 09:16 - 11:32 - Current Liabilities 13:14 - Current Liabilities and Long-term Liabilities P10-1 17:30 - Determinable Current Liabilities 17:47 - Determinable CL - continued 18:36 - T accounts and inferring payments-example 21:05 - E10-7 T accounts and inferring payments 21:35 - T accounts and inferring payments-example 21:41 - E10-7 T accounts and inferring payments 21:46 - T accounts and inferring payments-example 21:48 - E10-7 T accounts and inferring payments 21:56 - T accounts and inferring payments-example 22:00 - E10-7 T accounts and inferring payments 22:00 - 29:10 - E10-4 Notes Payable and Actual Interest RateOn 12.1 company borrowed $19,250 from bank signing a 90 day note with a face amount of $20,000. the stated interest rate is 15%.a. Provide journal entry by borrower on 12.1.b. Provide adjusting journal entry on 12.31 before FS are prepared. Show how the note payable would be disclosed on the BS.c. Compute the actual annual interest rate on the note.d. Why is the actual interest rate different from the stated rate? 33:59 - Liabilities and Current Ratio E10-2Company borrowed $100,000 to finance the purchase of fixed assets. The loan contract provided of a 12% interest rate and that the principal must be paid in full in ten years. The contract also states that current ratio be maintained at 1.5:1. Before the company borrowed the $100,000, the current assets and current liabilities were $130,000 and $80,000 respectively.a. Compute current ratio if invest $50,000 in fixed assets and remainder in short-term investments. To what dollar amount can current liabilities grow before company violates the debt contract?b. Compute current ratio if invest $80,000 in fixed assets and remainder in cash or short-term investments. To what dollar amount can current liabilities grow before company violates the debt contract?c. Compute current ratio if invest $100,000 in fixed assets. To what dollar amount can current liabilities grow before company violates the debt contract? 34:41 - Contingent Liabilities 34:42 - Liabilities and Current Ratio E10-2Company borrowed $100,000 to finance the purchase of fixed assets. The loan contract provided of a 12% interest rate and that the principal must be paid in full in ten years. The contract also states that current ratio be maintained at 1.5:1. Before the company borrowed the $100,000, the current assets and current liabilities were $130,000 and $80,000 respectively.a. Compute current ratio if invest $50,000 in fixed assets and remainder in short-term investments. To what dollar amount can current liabilities grow before company violates the debt contract?b. Compute current ratio if invest $80,000 in fixed assets and remainder in cash or short-term investments. To what dollar amount can current liabilities grow before company violates the debt contract?c. Compute current ratio if invest $100,000 in fixed assets. To what dollar amount can current liabilities grow before company violates the debt contract? 36:33 - Contingent Liabilities 36:34 - Figure 10-5 36:35 - Contingent Liabilities 36:37 - Liabilities and Current Ratio E10-2Company borrowed $100,000 to finance the purchase of fixed assets. The loan contract provided of a 12% interest rate and that the principal must be paid in full in ten years. The contract also states that current ratio be maintained at 1.5:1. Before the company borrowed the $100,000, the current assets and current liabilities were $130,000 and $80,000 respectively.a. Compute current ratio if invest $50,000 in fixed assets and remainder in short-term investments. To what dollar amount can current liabilities grow before company violates the debt contract?b. Compute current ratio if invest $80,000 in fixed assets and remainder in cash or short-term investments. To what dollar amount can current liabilities grow before company violates the debt contract?c. Compute current ratio if invest $100,000 in fixed assets. To what dollar amount can current liabilities grow before company violates the debt contract? 38:43 - Contingent Liabilities 41:40 - Figure 10-5 43:09 - Contingent Liabilities Disclosures 44:20 - P10-4 Contingent Liability Recognition 45:33 - Potential Lawsuit: P10-4, Parts a & b: 45:50 - Class Problem: P10-4, Part c: 47:28 - WarrantyA promise by a manufacturer or seller to ensure the quality or performance of the product for a specific period of time 48:29 - Contingent Liabilities 49:58 - Warranties: Exercise: E10-10(a) 53:18 - Class Exercise: E10-10(b) 54:57 - Retirement Costs (App 10A) 58:59 - Retirement Liabilities Disclosures: NIKE 01:04:06 - 01:07:23 -