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Parmlee Inc \quad \quad \quad \quad \quad \quad \quad \quad \quad

Question 125

Essay

Parmlee Inc.has several assets and liabilities on its balance sheet.For each of the items below,decide whether it is a current asset (CA),current liability (CL),long-term asset (LTA),long-term liability(LTL),or contra-liability (COL).
\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad CA/CL/LTA/LTL/COL \text{ CA/CL/LTA/LTL/COL }
a. 15 year lease obli gation \quad \quad \quad \quad \quad \quad \quad \quad \quad a.-----------

b. Discount on bonds payable \quad \quad \quad \quad \quad \quad \quad \quad b.-----------

c. Amcunts owed to the utility company \quad \quad \quad \quad \quad c.-----------

d. A leased asset \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad d.-----------

e. Current portion of longy-term debt \quad \quad \quad \quad \quad \quad e. -----------

f. An asset witha lease term of 75%75 \% of the \quad \quad \quad \quad \quad f.-----------

Correct Answer:

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a.LTL and CL(for lea...

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