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Liabilities on the Balance Sheet For each of the following situations, indicate the amount shown as a liability on the balance sheet of Kane, Inc., at December 31: a. Kane has accounts payable of $110,000 for merchandise included in the year-end inventory. $ 0 b. Kane agreed to purchase a $28,000 drill press in the following January. $ 0 c. During November and December of the current year, Kane sold products to a firm and guaranteed them against product failure for 90 days. Estimated costs of honoring this provision next year are $2,200. $ 0 d. On December 15, Kane declared a $70,000 cash dividend payable on January 15 of the following year to shareholders of record on December 31. $ 0 e. Kane provides a profit-sharing bonus for its executives equal to five percent of the reported before-tax income for the current year. The estimated before-tax income for the current year is $600,000. $ 0

Liabilities on the Balance Sheet For each of the following situations, indicate the amount shown as a liability on the balance sheet of Kane, Inc., at December 31: a. Kane has accounts payable of $110,000 for merchandise included in the year-end inventory. $ 0 b. Kane agreed to purchase a $28,000 drill press in the following January. $ 0 c. During November and December of the current year, Kane sold products to a firm and guaranteed them against product failure for 90 days. Estimated costs of honoring this provision next year are $2,200. $ 0 d. On December 15, Kane declared a $70,000 cash dividend payable on January 15 of the following year to shareholders of record on December 31. $ 0 e. Kane provides a profit-sharing bonus for its executives equal to five percent of the reported before-tax income for the current year. The estimated before-tax income for the current year is $600,000. $ 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Liabilities on the Balance Sheet For each of the following situations, indicate the amount shown as a liability on the balance sheet of Kane, Inc., at December 31: a. Kane has accounts payable of $110,000 for merchandise included in the year-end inventory. $ 0 b. Kane agreed to purchase a $28,000 drill press in the following January. $ 0 c. During November and December of the current year, Kane sold products to a firm and guaranteed them against product failure for 90 days. Estimated costs of honoring this provision next year are $2,200. $ 0 d. On December 15, Kane declared a $70,000 cash dividend payable on January 15 of the following year to shareholders of record on December 31. $ 0 e. Kane provides a profit-sharing bonus for its executives equal to five percent of the reported before-tax income for the current year. The estimated before-tax income for the current year is $600,000. $ 0
Transcribed Image Text:Liabilities on the Balance Sheet For each of the following situations, indicate the amount shown as a liability on the balance sheet of Kane, Inc., at December 31: a. Kane has accounts payable of $110,000 for merchandise included in the year-end inventory. $ 0 b. Kane agreed to purchase a $28,000 drill press in the following January. $ 0 c. During November and December of the current year, Kane sold products to a firm and guaranteed them against product failure for 90 days. Estimated costs of honoring this provision next year are $2,200. $ 0 d. On December 15, Kane declared a $70,000 cash dividend payable on January 15 of the following year to shareholders of record on December 31. $ 0 e. Kane provides a profit-sharing bonus for its executives equal to five percent of the reported before-tax income for the current year. The estimated before-tax income for the current year is $600,000. $ 0
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