Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable. Warranty: It is an agreement made by the company to provide guarantee against the defects in the products. Contingent liability : It is a potential liability of a company that depends on a future event. It is the result of an uncertain event. For paying a contingent liability, some event should happen in the future. To journalize : The liabilities transactions.

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Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 11, Problem 11.33BP

1.

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

Contingent liability: It is a potential liability of a company that depends on a future event. It is the result of an uncertain event. For paying a contingent liability, some event should happen in the future.

To journalize: The liabilities transactions.

2.

To determine

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

To prepare: T-account of Estimated Warranty Payable.

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Journalizing liability transactions The following transactions of Belkin Howe occurred during 2018: Requirements Journalize required transactions, if any, in Howe’s general journal. Explanations are not required. What is the balance in Estimated Warranty Payable assuming a beginning balance of $0?

Please answer both

#22During 2018, Josephine company was sued by a competitor for P1,500,000 for infringement of a patent. Based on the adviceof the entity’s legal counsel, Josephine company accrued the sum of P900,000 as a provision in its financial statements for theyear ended December 31, 2018. Subsequently, on March 15, 2019, the supreme court decided in favor of the party alleginginfringement of the patent and ordered the defendant to pay the aggrieved party a sum of P1,050,000. The financial statementswere prepared by the entity’s management on February 15, 2019 and approved by the board of directors on March 31, 2019.How much should be recognized as accrued liability on December 31, 2018? PLS provide solution and explanation for the answer above Philippines Accounting standard

Answer 2

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Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 11, Problem 11.33BP

1.

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

Contingent liability: It is a potential liability of a company that depends on a future event. It is the result of an uncertain event. For paying a contingent liability, some event should happen in the future.

To journalize: The liabilities transactions.

2.

To determine

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

To prepare: T-account of Estimated Warranty Payable.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 11, Problem 11.33BP

1.

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

Contingent liability: It is a potential liability of a company that depends on a future event. It is the result of an uncertain event. For paying a contingent liability, some event should happen in the future.

To journalize: The liabilities transactions.

2.

To determine

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

To prepare: T-account of Estimated Warranty Payable.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 11, Problem 11.33BP

1.

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

Contingent liability: It is a potential liability of a company that depends on a future event. It is the result of an uncertain event. For paying a contingent liability, some event should happen in the future.

To journalize: The liabilities transactions.

2.

To determine

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

To prepare: T-account of Estimated Warranty Payable.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 11, Problem 11.33BP

1.

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

Contingent liability: It is a potential liability of a company that depends on a future event. It is the result of an uncertain event. For paying a contingent liability, some event should happen in the future.

To journalize: The liabilities transactions.

2.

To determine

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

To prepare: T-account of Estimated Warranty Payable.

Answer 6

Chapter 11, Problem 11.33BP

1.

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

Contingent liability: It is a potential liability of a company that depends on a future event. It is the result of an uncertain event. For paying a contingent liability, some event should happen in the future.

To journalize: The liabilities transactions.

Answer 7

Chapter 11, Problem 11.33BP

1.

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

Contingent liability: It is a potential liability of a company that depends on a future event. It is the result of an uncertain event. For paying a contingent liability, some event should happen in the future.

To journalize: The liabilities transactions.

Answer 8

2.

To determine

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

To prepare: T-account of Estimated Warranty Payable.

Answer 9

2.

To determine

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

To prepare: T-account of Estimated Warranty Payable.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 11 - Prob. 1QC Ch. 11 - On January 1, 2016, a business borrowed 18,000 on...Ch. 11 - A company sells 180,000 (selling price) of goods...Ch. 11 - Prob. 4QC Ch. 11 - Prob. 5QC Ch. 11 - Prob. 6QC Ch. 11 - Prob. 7QC Ch. 11 - Vega Company expects to pay a 4% bonus on net...Ch. 11 - Prob. 9QC Ch. 11 - Prob. 10QC

Solution Summary: The author explains that a business owes liabilities to outsiders, such as creditors, bills, bank overdraft, salaries and wages, and Notes.

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

To prepare: T-account of Estimated Warranty Payable.

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Chapter 11 Solutions

Solution Summary: The author explains that a business owes liabilities to outsiders, such as creditors, bills, bank overdraft, salaries and wages, and Notes.

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products. To prepare: T-account of Estimated Warranty Payable.

Want to see the full answer?

Chapter 11 Solutions

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

To prepare: T-account of Estimated Warranty Payable.