For each of the following situations, indicate the liability amount, if any, that is reported on the balance sheet of South Bend Inc. at December 31 of the current fiscal year end. a. South Bend owes $792,000 at year-end for inventory purchases. b. South Bend agreed to purchase a $100,800 drill press in January of next year. c. During November and December, South Bend sold products to a customer and warranted them against product failure for 90 days. Estimated costs of honoring this 90-day warranty during the next fiscal year are $11,200. d. South Bend provides a profit-sharing bonus for its executives equal to 5% of reported pretax annual income. The estimated pretax income for the current fiscal year is $2,880,000. Bonuses are not paid until the following fiscal year. Note: Do not use a negative sign. Liability Amount a. $ b. $ C. $ d. $

For each of the following situations, indicate the liability amount, if any, that is reported on the balance sheet of South Bend Inc. at December 31 of the current fiscal year end. a. South Bend owes $792,000 at year-end for inventory purchases. b. South Bend agreed to purchase a $100,800 drill press in January of next year. c. During November and December, South Bend sold products to a customer and warranted them against product failure for 90 days. Estimated costs of honoring this 90-day warranty during the next fiscal year are $11,200. d. South Bend provides a profit-sharing bonus for its executives equal to 5% of reported pretax annual income. The estimated pretax income for the current fiscal year is $2,880,000. Bonuses are not paid until the following fiscal year. Note: Do not use a negative sign. Liability Amount a. $ b. $ C. $ d. $

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
Cee Co.s fiscal year begins April 1. At the beginning of its fiscal year, Cee Co. estimates that it will owe 17,400 in property taxes for the year. On June 1, its property taxes are assessed at 17,000, which it pays immediately. Prepare the related journal entries for April 1, May 1, and June 1. Then compute the monthly property tax expense that Cee Co. would record during June through March.
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On July 8, Jones Inc. issued an $70,600, 8%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends on July 31. Using the 360-day year, what is the amount of interest expense recognized by Jones in the current fiscal year? Round your answer to the nearest whole dollar.
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