Chapter 11, Problem 11.1AP

(a)

To determine

Current Liability: Every company has some debts or liabilities which need to be paid in less than one year or during current accounting period. Those debts or liabilities are called current liabilities.

Journal Entries: Entries to record the financial transactions during each accounting period are called journal entries. Income, liabilities and the giver are credited if the balance is increased and debited if the balance is reduced Expenses, assets and the receiver are debited if the balance is increased and credited if the balance is reduced in a journal entry.

To record: The journal entries for Company A.

(b).

(1)

To determine

To record: The adjusting entries for the outstanding notes payable.

(2).

To determine

To record: The adjusting entries for estimated warranty liability.

(c)

To determine

To prepare: The current liabilities section of balance sheet at January 31, 2017.