Homework Answers
Correct answer---A note payable with no specific maturity date.
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A liability cannot be recorded until the time of its payment is certain. The note can be a liability if the amount payable is on demand, such as in case of a normal bank deposit. A note where the date of maturity is not defined specifically cannot be recorded as a liability.
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Which of the following would NOT be a liability? O The signing of a three-year employment...
Show all work please. DIPIUL 2 True/False 7 points each. Circle the correct answer. 4. A...
Show all work please.
DIPIUL 2 True/False 7 points each. Circle the correct answer. 4. A single liability cannot be divided between current and noncurrent liabilities. True False A liability may exist even if there is uncertainty about whom to pay, when to pay, how much to pay. True False 6. Multiple Choice 5 points each. Circle the correct answer. 57. A. B. A contingent liability is Always of a specific amount A potential obligation that depends on a future...
1. A contingent liability is: always a specific amount. an obligation arising from the...
1. A contingent liability is: always a specific amount. an obligation arising from the purchase of goods or services on credit. an obligation not requiring a future payment. a potential obligation that depends on a future event. 2. On January 1, Weldon Weston Co. purchased equipment for $250,000. It has an estimated useful life of five years and its residual value is $25,000. The company has a calendar year-end. Using the straight-line method, depreciation expense for...
Recording Assurance-Type Warranty Liability Finisher Inc. sells merchandise for $450,000 in 2020 that includes a three-year...
Recording Assurance-Type Warranty Liability Finisher Inc. sells merchandise for $450,000 in 2020 that includes a three-year limited warranty, Warranty costs are estimated to be 19 of sales. The company incurred actual costs of $1,440 in 2020 related to the warranties. a. Record the warranty accrual at the time of sale in 2020. b. Record the adjustment to the warranty accrual for actual warranty costs in 2020. Account Name Cr. . 0 0 D 0 b. 0 0 E pepe cen...
of the following, which typically would not be classified as a current liability? Multiple Choice o...
of the following, which typically would not be classified as a current liability? Multiple Choice o A six-month bank loan to be paid with the proceeds from the sale of common stock. . Rent revenue received in advance. 0 0 A long-term noté payable maturing within the coming year. 0 Estimated liability from cash rebate program Google Chrome
Of the following, which usually would not be classified as a current liability? Multiple Choice A...
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P11-27A Journalizing liability transactions Learning Objectives 1, 3 The following transactions of Denver Pharmacies occurred during 2013 and 2014: Jan. 29 Cash $16,960 Dec. 31 Interest Expense $360 2013 Jan. 9 Purchased computer equipment at a cost of $9,000, signing a six-month, 6% note payable for that amount. Recorded the week's sales of $64,000, three-fourths on credit and one-fourth for cash. Sales amounts are subject to a 6% state sales tax. Ignore cost of goods sold. Sent the last week's...
0-27A Journalizing liability transactions following transactions of Houston Pharmacies occurred during 2015 and 2016: Current Liabilities...
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All of the following are criteria that financial reporting requires before recognizing an obligation as a...
All of the following are criteria that financial reporting requires before recognizing an obligation as a liability except: a. The transaction or event that gave rise to the obligation has already occurred. b. The firm has a present obligation and little or no discretion to avoid the transfer. c. The firm must know the precise amount of the obligation before recording it. d. The obligation involves a probable future sacrifice of economic benefits—a future transfer of cash, goods, or services;...
Requirement: Classify Each liability as a current or long term and report the liability and its...
Requirement: Classify Each liability as a current or long term
and report the liability and its amount that would appear on the
prestige golf equipment balance sheet at October 31, 2017.
a. Sales of $5,250,000 are subject to estimated warranty cost of 3%. The estimated warranty payable at the beginning of the year was $38,000, and warranty payments for the year totalled $52,000. b. On October 1, 2017, Prestige signed a $150,000 note that requires annual payments of $30,000 plus...
A company borrowed money from a bank by signing a three-month note payable in the amount...
A company borrowed money from a bank by signing a three-month note payable in the amount of $15,000 on December 1. The note requires the company to pay interest at an annual rate of 8%. The company records adjusting entries on December 31. The adjusting entry that the company should record for accrued interest on December 31 would include a debit to interest expense for O $100. O $300. O $1,200 O $900. $160.
Show all work please.
DIPIUL 2 True/False 7 points each. Circle the correct answer. 4. A single liability cannot be divided between current and noncurrent liabilities. True False A liability may exist even if there is uncertainty about whom to pay, when to pay, how much to pay. True False 6. Multiple Choice 5 points each. Circle the correct answer. 57. A. B. A contingent liability is Always of a specific amount A potential obligation that depends on a future...
Recording Assurance-Type Warranty Liability Finisher Inc. sells merchandise for $450,000 in 2020 that includes a three-year limited warranty, Warranty costs are estimated to be 19 of sales. The company incurred actual costs of $1,440 in 2020 related to the warranties. a. Record the warranty accrual at the time of sale in 2020. b. Record the adjustment to the warranty accrual for actual warranty costs in 2020. Account Name Cr. . 0 0 D 0 b. 0 0 E pepe cen...
of the following, which typically would not be classified as a current liability? Multiple Choice o A six-month bank loan to be paid with the proceeds from the sale of common stock. . Rent revenue received in advance. 0 0 A long-term noté payable maturing within the coming year. 0 Estimated liability from cash rebate program Google Chrome
P11-27A Journalizing liability transactions Learning Objectives 1, 3 The following transactions of Denver Pharmacies occurred during 2013 and 2014: Jan. 29 Cash $16,960 Dec. 31 Interest Expense $360 2013 Jan. 9 Purchased computer equipment at a cost of $9,000, signing a six-month, 6% note payable for that amount. Recorded the week's sales of $64,000, three-fourths on credit and one-fourth for cash. Sales amounts are subject to a 6% state sales tax. Ignore cost of goods sold. Sent the last week's...
0-27A Journalizing liability transactions following transactions of Houston Pharmacies occurred during 2015 and 2016: Current Liabilities and Payroll Learning Objectives 1,3 2015 Jan. 29 Cash $17,490 9 Jan. 9 Purcha 29 Feb. 5 Jul 9 Aug 31 Purchased computer equipment at a cost of $13,000, signing a six-month, 9% note payable for that amount. Recorded the week's sales of $66,000, three-fourths on credit and one-fourth for cash Sales amounts are subject to a 6% state sales tax. Ignore cost of...
Requirement: Classify Each liability as a current or long term
and report the liability and its amount that would appear on the
prestige golf equipment balance sheet at October 31, 2017.
a. Sales of $5,250,000 are subject to estimated warranty cost of 3%. The estimated warranty payable at the beginning of the year was $38,000, and warranty payments for the year totalled $52,000. b. On October 1, 2017, Prestige signed a $150,000 note that requires annual payments of $30,000 plus...
A company borrowed money from a bank by signing a three-month note payable in the amount of $15,000 on December 1. The note requires the company to pay interest at an annual rate of 8%. The company records adjusting entries on December 31. The adjusting entry that the company should record for accrued interest on December 31 would include a debit to interest expense for O $100. O $300. O $1,200 O $900. $160.
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