Liabilities: Liabilities are an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liabilities or a non-current liabilities depending upon the time period in which it is paid. To Identify: Whether the situation represents a contingent liability .

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Answer 1

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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 8, Problem 8.13E

1

To determine

Liabilities:

Liabilities are an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liabilities or a non-current liabilities depending upon the time period in which it is paid.

To Identify: Whether the situation represents a contingent liability.

2

To determine

To Record: the warranty expense and warranty liability for the month of December based on 6% of sales.

3

To determine

To Record: the payment of the actual warranty expenditures of $13,000 in January.

4

To determine

To Identify: the balance in the warranty liability account.

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Sp25 ACCT X CengageNOWv2 | Online teaching X exhibit 6.4.jpg 71x399) x + bw.com/ilrn/takeAssignment/takeAssignmentMain.do?inprogress=true FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are Number Date Transaction of Units Per Unit Total Apr. 3 Inventory 25 $1,200 $30,000 8 Purchase 75 1,240 93,000 11 Sale 40 2,000 80,000 30 Sale 30 2,000 60,000 May 8 Purchase 60 1,260 75,600 10 Sale 50 2,000 100,000 19 Sale 20 2,000 40,000 < 28 Purchase 80 1,260 100,800 June 5 Sale 40 2,250 90,000 16 Sale 25 2,250 56,250 21 Purchase 35 1,264 44,240 28 Sale 44 2,250 99,000 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illust first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER un Check My Work 3 more Check My Work uses remaining Q Search hp

PLEASE HELP! NOTICE. THERE ARE FIVE CELLS ON THE LEFT SIDE TO FILL. THE DROPDOWN SHOWS THE OPTIONS FOR THESE CELLS.

Calm Ltd has the following data relating tò two investment projects, only one of which mayb e s e l e c t e d :The cost of capital is 10 per cent, and depreciation is calculated using straight line method.a . Calculate for each of the project:i. Average annual accounting rate of return on average capital investedi i . Net Present Valuei l l . I n t e r n a l R a t e o f Returnb. Discuss the relative merits of the methods of evaluation mentioned above in (a).Q.4a . In the context of process costing, discuss the following concepts briefly, i . Equivalent unitsNormal lossill. Abnormal lossi v. Joint productsV . By productsb . Discuss the different types of standard costing and objectives of standard costing.

Answer 2

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 8, Problem 8.13E

1

To determine

Liabilities:

Liabilities are an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liabilities or a non-current liabilities depending upon the time period in which it is paid.

To Identify: Whether the situation represents a contingent liability.

2

To determine

To Record: the warranty expense and warranty liability for the month of December based on 6% of sales.

3

To determine

To Record: the payment of the actual warranty expenditures of $13,000 in January.

4

To determine

To Identify: the balance in the warranty liability account.

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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 8, Problem 8.13E

1

To determine

Liabilities:

Liabilities are an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liabilities or a non-current liabilities depending upon the time period in which it is paid.

To Identify: Whether the situation represents a contingent liability.

2

To determine

To Record: the warranty expense and warranty liability for the month of December based on 6% of sales.

3

To determine

To Record: the payment of the actual warranty expenditures of $13,000 in January.

4

To determine

To Identify: the balance in the warranty liability account.

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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 8, Problem 8.13E

1

To determine

Liabilities:

Liabilities are an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liabilities or a non-current liabilities depending upon the time period in which it is paid.

To Identify: Whether the situation represents a contingent liability.

2

To determine

To Record: the warranty expense and warranty liability for the month of December based on 6% of sales.

3

To determine

To Record: the payment of the actual warranty expenditures of $13,000 in January.

4

To determine

To Identify: the balance in the warranty liability account.

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Answer 5

Chapter 8, Problem 8.13E

1

To determine

Liabilities:

Liabilities are an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liabilities or a non-current liabilities depending upon the time period in which it is paid.

To Identify: Whether the situation represents a contingent liability.

2

To determine

To Record: the warranty expense and warranty liability for the month of December based on 6% of sales.

3

To determine

To Record: the payment of the actual warranty expenditures of $13,000 in January.

4

To determine

To Identify: the balance in the warranty liability account.

Answer 6

Chapter 8, Problem 8.13E

1

To determine

Liabilities:

Liabilities are an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liabilities or a non-current liabilities depending upon the time period in which it is paid.

To Identify: Whether the situation represents a contingent liability.

Answer 7

Chapter 8, Problem 8.13E

1

To determine

Liabilities:

Liabilities are an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liabilities or a non-current liabilities depending upon the time period in which it is paid.

To Identify: Whether the situation represents a contingent liability.

Answer 8

2

To determine

To Record: the warranty expense and warranty liability for the month of December based on 6% of sales.

Answer 9

2

To determine

To Record: the warranty expense and warranty liability for the month of December based on 6% of sales.

Answer 10

3

To determine

To Record: the payment of the actual warranty expenditures of $13,000 in January.

Answer 11

3

To determine

To Record: the payment of the actual warranty expenditures of $13,000 in January.

Answer 12

4

To determine

To Identify: the balance in the warranty liability account.

Answer 13

4

To determine

To Identify: the balance in the warranty liability account.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 8 - Prob. 1RQ Ch. 8 - Prob. 2RQ Ch. 8 - Prob. 3RQ Ch. 8 - Provide examples of current liabilities in the...Ch. 8 - Prob. 5RQ Ch. 8 - Prob. 6RQ Ch. 8 - How does commercial paper differ from a normal...Ch. 8 - Prob. 8RQ Ch. 8 - Prob. 9RQ Ch. 8 - Prob. 10RQ

Solution Summary: The author identifies whether the situation represents a contingent liability because the cost for warranties that will be incurred are probable and based on their prior experience they are reasonably estimable.

To Record: the warranty expense and warranty liability for the month of December based on 6% of sales.

To Record: the payment of the actual warranty expenditures of $13,000 in January.

To Identify: the balance in the warranty liability account.

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Chapter 8 Solutions