Drop Downs Hi Any help on the wrong answers in red please Th

Drop Down\'s

Hi, Any help on the wrong answers in red please?

Thanks!

Problem 10-6A Your answer is partially correct. Try again. The following transactions occurred in Wendell Corporation, which has a December 31 year end. Identify which of the below transactions gave rise to amounts that should be reported in the current liabilities section or the non-current liabilities section of Wendell\'s statement of financial position as at December 31. Identify the account title(s) and amount(s) for cach reported liability. (Ifan item falls under both current and non-current liabilities section then list current liabilities first. Do not leave any answer field blank. Enter 0 for amounts.) Section Account Title(s) Amount(s) 1. Property taxes of $40,000 were assessed on March 1 for the calendar year. They are payable by May 1 Current Liabilities Property Tax Payable Interest Payable Current Portion of Notes Payable 40,000 · Wendell signed a five-year, 7%, $200,000 instalment note payable on July 1, The note requires fixed principal payments of $40,000, plus interest annually on each June 30 for the next five years. Current Liabilities 14,000 40,000 160,000 120,000 10,000 Non-Curent Liabilities Note 3. Wendell purchased inventory for $120,000 on December 23 on account, terms n/30, FOB shipping point. The Current Liabilities Accounts Payable inventory ws shipped on December 28 and received by Wendell on lanuary 2 Wendell received $10,000 from customers on December 21 for services to be performed in January On December 31, wendell sold inventory for $8,000, plus 13% HST. The cost of goods sold was $5,000. The Current Liabilities Uncarned Revenuc 5. company uses a inventory system Not a Liability Not on Statement of Financial Position 8,000

Solution

Section Account Title(s) Amount(s) Explanation 1 Current liabilities Property tax payable 0 Balance on Dec. 31 will be $0 2 Current liabilities Interest payable 7000 $200000 x 7% x 6/12 = $7000 5 Current liabilities Sales tax payable 1040 $8000 x 13% = $1040 6 Current liabilities Salaries payable 3600 $18000 x 1/5 = $3600 7 Contingent liability Not on statement of financial position 0 9 Current liabilities Debt due within one year 30000 Current liabilities to be listed first. Non-current liabilities Non-current debt 220000 10 Not a liability Not on statement of financial position 0