Problems1). Record the journal entries for the following current liabilities for Company ZA). Company Z is required by law to collect and remit sales taxes to the state. If $78,000 of cashsales are subject to a 6% sales taxB). Company Z faces a probalble loss on a pending lawsuit where the amount of the loss is estimatedto be $500,000.C). Employees earn vacation pay at the rate of one day per month. During the month, 25 employeesquality for one vacation day each. Their average daily wage is $100 per day.D). Z company estimates thatt warranty expense will be 4% of sales. The company's sales for thecurrent period are $185,000..E). Z Company receives $48, 000 cash in advance ticket sales for 12 home games. Record theadvance ticket sales on April :30. Record the revenue earned for the first home game played onAugust 14."VB.C.D.E.

Journal Entry - It is record of every business transactions in day to day life whether it is…

Answered: Problems 1). Record the journal entries…

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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Under the "Late Payment" heading of a LE, there is a statement that if 10 days pass after a payment is due, a $300 charge will apply. Does this statement conform to federal regulations? Why or why not? No. Late charges expressed as a dollar amount are capped at $250. No. The late charge must be expressed as a percentage. Yes. This statement defines the late charge as a dollar amount and when it's due. Yes. This statement satisfies all aspects of the relevant regulation.
During 2021, tesa Company experienced financial difficulties and is likely to default on a P5,000,000, 15% three year note dated January 1, 2019 payable to Bank of the Pasa Island. On December 31, 2021, the bank agreed to settle the note and unpaid interest of P750,000 for P4,100,000 cash payable on January 31, 2022. . What amount should be reported as gain from extinguishment of debt in 2021 balance sheet?
On December 31, 2021, Empoy Company has overdue notes payable of P5,000,000 with accrued interest of P500,000. The company is threatened with a court suit if it would not settle its debt. The company entered into an agreement with the creditor to transfer real estate carried in the books of Empoy at P3million. The real estate has a current fair market value of P4.5million. What was the total amount of gain reported by Empoy as a result of debt restructuring/ a.) 2,500,000 b.) 1,500,000 c.) 1,000,000 d.) 500,000
On December 31, 2021, Empoy Company has overdue notes payable of P5,000,000 with accrued interest of P500,000. The company is threatened with a court suit if it would not settle its debt. The company entered into an agreement with the creditor to transfer real estate carried in the books of Empoy at P3million. The real estate has a current fair market value of P4.5million. What was the total amount of gain reported by Empoy as a result of debt restructuring? 2,500,000 1,500,000 1,000,000 500,000
Annette Corp. issued a $330,000, three-year, zero-interest-bearing note payable to Agnes Corp. for equipment on April 30, Year 5. Annette would normally pay interest at 6%. Annette has a December 31 year-end and will repay the note with three equal yearly payments of $110,000. Annette Corporation follows IFRS. Instructions Prepare the following journal entries for Annette Corporation: (show all your work) 1. Record the note 2. December 31, Year 5 interest accrual 3. April 30, Year 6 payment 4. December 31, Year 6 interest accrual 5. April 30, Year 7 payment
Rosewood Company made a loan of $7,000 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rate of interest. What is the amount of interest revenue that Rosewood would report in Year 1 and Year 2, respectively? Multiple Choice O O $420 in Year 1 and $0 in Year 2 $0 in Year 1 and $420 in Year 2 $105 in Year 1 and $315 in Year 2 $315 in Year 1 and $105 in Year 2
Max Corp. sold goods for $36,000 on July 17, 2020, and accepted a 12%, 90-day note. On August 1, the note was sold to a bank at a 15% discount rate. Required: a. Compute the proceeds. Assume a 360-day year. b. If the maker dishonored the note at maturity, prepare the entry for Max Corp. assuming $75 of bank protest fees. If an amount box does not require an entry, leave it blank.
7. Johnstone Controls had the following situations on December 2021. On March 31, 2021, the company lent $59,000 to another company. A note was signed with principal and interest at 8% payable on March 31, 2022. On September 30, 2021, the company paid its landlord $14,800 representing rent for the period September 30, 2021, to September 30, 2022. Johnstone debited prepaid rent. Supplies on hand at the end of 2020 totaled $3,960. Additional supplies costing $7,160 were purchased during 2021 and debited to the supplies account. At the end of 2021, supplies costing $4,960 remain on hand. Vacation pay of $11,880 for the year that had been earned by employees was not paid or recorded. The company records vacation pay as salaries expense. Prepare the necessary adjusting entries for Johnstone Controls at the end of its December 31, 2021, fiscal year-end for each of the above situations. (If no entry is required for a transaction/event, select "No journal entry required" in the first…
A company borrows $60,000 by signing a $60,000, 8% 6-year note that requires equal payments of $!2,979 at the end of each year. The first payment will record an interest expense of $4,800 and will reduce principal by $__________.
71. Sbject :- Accounting
B. Manchester Company provided the following information on December 31, 2021: Employee income taxes withheld - 900,000 Accounts receivable with credit balance - 750,000 Estimated expenses of meeting warranties - 500,000 Estimated damages as a result of unsatisfactory performance on a contract - 1,500,000 Accounts payable - 3,000,000 Deferred serial bonds, issued at par and bearing interest at 12% payable in semiannual installments of P500,000 each year, the last bond to be paid on October 1, 2027.interest is also paid semiannually. 5,000,000 3. What amount should Manchester report as total current liabilities on December 31, 2021?
11). rosewood company made a loan of $12,600 to one of the company's employees on april 1, year 1. the one-year note carried a 6% rate of interest. what is the amount of interest revenue that rosewood would report in year 1 and year 2 respectively?

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