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Chapter 9: Q16DQ (page 428)

Refer to Samsung’s balance sheet in Appendix A. List Samsung’s current liabilities as of December 31, 2015.

Short Answer

Expert verified

Following are the current liabilities in Samsung’s balance sheet: -

  1. Trade and other payables
  2. Short-term borrowings
  3. Other payables
  4. Advances received
  5. Withholdings
  6. Accrued expenses
  7. Income tax payable
  8. Current portion of long-term liabilities
  9. Provisions
  10. Other current liabilities
  11. Liabilities held for sale

Step by step solution

01

Meaning of Current Liabilities

Current liabilities are the company's obligations to be paid within one yearor twelve months.

02

Current liabilities in the balance sheet of Samsung

Particulars

December 31, 2015

KRW

Current liabilities:

Trade and other payables

6,187,291

Short-term borrowings

11,155,425

Other payables

8,864,378

Advances received

1,343,432

Withholdings

992,733

Accrued expenses

11,628,739

Income tax payable

3,401,625

Current portion of long-term liabilities

221,548

Provisions

6,420,603

Other current liabilities

287,135

Liabilities held for sale

-

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Most popular questions from this chapter

Question: Cameron Bly is a sales manager for an automobile dealership. He earns a bonus each year based on revenue from the number of autos sold in the year less related warranty expenses. Actual warranty expenses have varied over the prior 10 years from a low of 3% of an automobile’s selling price to a high of 10%. In the past, Bly has tended to estimate warranty expenses on the high end to be conservative. He must work with the dealership’s accountant at year-end to arrive at the warranty expense accrual for cars sold each year.

1. Does the warranty accrual decision create any ethical dilemma for Bly?

2. Because warranty expenses vary, what percent do you think Bly should choose for the current year? Justify your response.

Mest Company has 9 employees. FICA Social Security taxes are 6.2% of the first \(118,500 paid to eachemployee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are5.4% of the first \)7,000 paid to each employee. Cumulative pay for the current year for each of its employees

follows.

Employee Cumulative Pay Employee Cumulative Pay Employee Cumulative Pay

Ken S. . \( 6,000 Michael M. \)143,500 Lori K. $121,000

Tim V. . 60,200 Erin C. . 106,900 Kitty O. 36,900

Steve S. . 87,000 Kyle B. . 118,500 John W. . 4,000

a. Prepare a table with the following six column headings. Compute the amounts in this table for each employee and then total the numerical columns.

Pay Subject to Pay Subject Pay Subject Pay Subject

Cumulative FICA Social to FICA to FUTA to SUTA

Employee Pay Security Medicare Taxes Taxes

b. For the company, compute each total for: FICA Social Security taxes, FICA Medicare taxes, FUTA taxes, and SUTA taxes. (Hint:Remember to include in those totals any employee share of taxes that the company must collect.) (Round amounts to cents.)

What amount of income tax is withheld from the salary of an employee who is single with two withholding allowances and earns \(725 per week? What if the employee earns \)625 and has no withholding allowances? (Use Exhibit 9A.6).

Sera Corporation has made and recorded its quarterly income tax payments. After a final review of taxes for the year, the company identifies an additional \(40,000 of income tax expense that should be recorded. A portion of this additional expense, \)6,000, is deferred for payment in future years. Record Sera’s yearend adjusting entry for income tax expense.

Question: Which of the following items are normally classified as current liabilities for a company that has a 15-month operating cycle?

  1. Portion of long-term note due in 15 months
  2. Note payable maturing in 2 years
  3. Note payable due in 18 months
  4. Note payable due in 11 months
  5. FICA taxes payable
  6. Salaries payable
See all solutions

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