Required information [The following information applies to the questions displayed below.] A company incurred the following transactions: a. Recorded the financing (capital) lease of a truck. The present value of the lease payments is $110,000; the total of the lease payments to be made is $136,000. b. Recorded the company's payroll for the month. Gross pay was $21,100, net pay was $16,300, and various withholding liability accounts were credited for the difference. c. Issued $52,000 of bonds payable at a price of 102. d. Adjusted the estimated liability under a warranty program by reducing previously accrued warranty expense by $7,600. e. Retired $42,000 face amount of bonds payable with a carrying value of $41,600 by calling them at a redemption value of 104. f. Accrued estimated annual health care costs for retirees; $62,000 is expected to be paid within a year, and $470,000 is expected to be paid in more than a year. Required: a-1. Show the effect, if any, of each transaction/adjustment on the appropriate balance sheet category or on net income by selecting S *** Mout

Required information [The following information applies to the questions displayed below.] A company incurred the following transactions: a. Recorded the financing (capital) lease of a truck. The present value of the lease payments is $110,000; the total of the lease payments to be made is $136,000. b. Recorded the company's payroll for the month. Gross pay was $21,100, net pay was $16,300, and various withholding liability accounts were credited for the difference. c. Issued $52,000 of bonds payable at a price of 102. d. Adjusted the estimated liability under a warranty program by reducing previously accrued warranty expense by $7,600. e. Retired $42,000 face amount of bonds payable with a carrying value of $41,600 by calling them at a redemption value of 104. f. Accrued estimated annual health care costs for retirees; $62,000 is expected to be paid within a year, and $470,000 is expected to be paid in more than a year. Required: a-1. Show the effect, if any, of each transaction/adjustment on the appropriate balance sheet category or on net income by selecting S *** Mout

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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J4. Account
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