Item a. Rent received in advance for the first quarter of 2021. b. At December 31, bonds payable of $50 million is outstanding. The bonds pay 6% interest every July 1 and mature in instalments of $10 million every July 1, beginning on July 1, 2021. c. A long-term advance of $5,000 was made by Hitech to the company's president on December 31, 2020. d. An empty warehouse with book value of $200,000 retired from use and held for sale. The current market value of the warehouse is $225,000. e. On December 20, 2020, Hitech declared a cash dividend of $2.50 per common share on the 500,000 common shares outstanding to be paid on January 10, 2021. f. In December 2020, a customer filed a lawsuit against Hitech company for breach of contract to services provided in 2020. The customer is seeking damages of $250,000. Hitech's legal counsel believes that Hitech will likely lose the lawsuit and have to pay between $150,000 and $250,000; the $150,000 payout and $250,000 payout Reporting on Dec. 31, 2020 SFP Current liabilities Rent revenue collected in advance. (or unearned rent venue)... ..$16,000 (done as example)

Item a. Rent received in advance for the first quarter of 2021. b. At December 31, bonds payable of $50 million is outstanding. The bonds pay 6% interest every July 1 and mature in instalments of $10 million every July 1, beginning on July 1, 2021. c. A long-term advance of $5,000 was made by Hitech to the company's president on December 31, 2020. d. An empty warehouse with book value of $200,000 retired from use and held for sale. The current market value of the warehouse is $225,000. e. On December 20, 2020, Hitech declared a cash dividend of $2.50 per common share on the 500,000 common shares outstanding to be paid on January 10, 2021. f. In December 2020, a customer filed a lawsuit against Hitech company for breach of contract to services provided in 2020. The customer is seeking damages of $250,000. Hitech's legal counsel believes that Hitech will likely lose the lawsuit and have to pay between $150,000 and $250,000; the $150,000 payout and $250,000 payout Reporting on Dec. 31, 2020 SFP Current liabilities Rent revenue collected in advance. (or unearned rent venue)... ..$16,000 (done as example)

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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