Garon Company disclosed the following liability account balances on December 31, 2016: Accounts payable 1,900,000.00 3,400,000.00 Bonds payable Premium on bonds payable 200,000.00 Deferred tax payable 400,000.00 Dividends payable 500,000.00 Income tax payable 800,000.00 Notes payable, due January 31, 2017 700,000.00 The deferred tax liability is based on temporary differences that will reverse in 2016. On December 31, 2016, what total amount should be reported as current liability? 7,100,000 3,900,000 4,300,000 4,100,000

Garon Company disclosed the following liability account balances on December 31, 2016: Accounts payable 1,900,000.00 3,400,000.00 Bonds payable Premium on bonds payable 200,000.00 Deferred tax payable 400,000.00 Dividends payable 500,000.00 Income tax payable 800,000.00 Notes payable, due January 31, 2017 700,000.00 The deferred tax liability is based on temporary differences that will reverse in 2016. On December 31, 2016, what total amount should be reported as current liability? 7,100,000 3,900,000 4,300,000 4,100,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Mackenzie Corp, is preparing the December 31, 2020, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability Income tax expense Mortgage payable, 6% $ 6,470 120-day note payable, 5% Unearned revenues Warranty expense 119,900 445,000 $ 81,000 297,000 6,500 Additional information: a. $10,900 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $127,040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $141,000 given similar cases in the industry. c. During December, Mackenzie had sales of $711,000. 4% of sales typically require warranty work equal to 25% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $111,600 of the Unearned Revenues remain unearned at…
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On January 1, 2015, Buchheit Enterprises reported $95,000 in a liability called “Bonds Payable,Net.” This liability related to a $100,000 bond with a stated interest rate of 5 percent that wasissued when the market interest rate was 6 percent. Assuming that interest is paid December 31each year, prepare the journal entry to record interest paid on December 31, 2015, using the simplified effective-interest method shown in Chapter Supplement 10C.
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Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability Income tax expense Mortgage payable, 6% $ 6,590 133,100 480,000 120-day note payable, 5% Unearned revenues Warranty expense $ 93,000 309,000 7,700 Additional information: a. $12,100 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $139,040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $153,000 given similar cases in the industry. c. During December, Mackenzie had sales of $723,000. 6% of sales typically require warranty work equal to 15% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $112,800 of the Unearned Revenues remain unearned at…