Liabilities on the Balance Sheet For each of the following situations, indicate the amount shown as a liability on the balance sheet of Cooper, Inc., at December 31: The situation doesn't require a liability to be recorded, leave the corresponding amount blank (zero). Transactions a. Cooper has accounts payable of $180,000 for merchandise included in the year-end inventory. b. Cooper agreed to purchase a $45,000 drill press in the following January. c. During November and December of the current year, Cooper sold products to a firm and guaranteed them against product failure for 90 days. Estimated costs of honoring this provision next year are $3,300. $ d. On December 15, Cooper declared a $90,000 cash dividend payable on January 15 of the following year to shareholders of record on December 31. $ e. Cooper 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 $1,200,000. $ Amount 180,000 ✓ 0x 0 x 0x
Liabilities on the Balance Sheet For each of the following situations, indicate the amount shown as a liability on the balance sheet of Cooper, Inc., at December 31: The situation doesn't require a liability to be recorded, leave the corresponding amount blank (zero). Transactions a. Cooper has accounts payable of $180,000 for merchandise included in the year-end inventory. b. Cooper agreed to purchase a $45,000 drill press in the following January. c. During November and December of the current year, Cooper sold products to a firm and guaranteed them against product failure for 90 days. Estimated costs of honoring this provision next year are $3,300. $ d. On December 15, Cooper declared a $90,000 cash dividend payable on January 15 of the following year to shareholders of record on December 31. $ e. Cooper 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 $1,200,000. $ Amount 180,000 ✓ 0x 0 x 0x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
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 Cooper, Inc., at December 31. If the situation doesn't require a liability to be recorded, leave the corresponding amount blank (zero).
**Transactions and Corresponding Amounts:**
a. Cooper has accounts payable of $180,000 for merchandise included in the year-end inventory.
- **Amount:** $180,000 ✔️
b. Cooper agreed to purchase a $45,000 drill press in the following January.
- **Amount:** $0 ❌
c. During November and December of the current year, Cooper sold products to a firm and guaranteed them against product failure for 90 days. Estimated costs of honoring this provision next year are $3,300.
- **Amount:** $0 ❌
d. On December 15, Cooper declared a $90,000 cash dividend payable on January 15 of the following year to shareholders of record on December 31.
- **Amount:** $0 ❌
e. Cooper 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 $1,200,000.
- **Amount:** $0 ❌
Each entry is followed by an indicator showing whether the entered amount is correct (✔️) or incorrect (❌).
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