Concept explainers
LO 1, 2, 3, 4
(Learning Objectives 1, 2, 3, 4: Measure and report current liabilities) At December 31, 2018, Filbert Corporation’s adjusted
Accrued Warranty Payable | $ 58,000 |
4% Notes Payable, due April 30, 2019 | 150,000 |
Unearned Service Revenue | 48,000 |
Accounts Payable | 225,000 |
Employee Income Tax Payable | 27,000 |
279,000 | |
Interest Payable | 29,000 |
8% Bonds Payable, due December 31, 2023 | 500,000 |
75,000 | |
164,000 | |
Salaries Payable | 84.000 |
5% Notes Payable, due December 31, 2019 | 200,000 |
Sales Tax Payable | 67,000 |
FICA Tax Payable | 7,000 |
Filbert Corporation provides multi-year warranties with its products. Half of the Accrued Warranty Liability relates to warranty liabilities that will be paid in 2019, while the other half relates to warranty liabilities to be paid in 2020. The Unearned Service Revenue pertains to a service contract that will be performed during 2019. $100,000 of the 8% bonds payable due December 31, 2023, is due on December 31. 2019.
Requirement
1. Prepare the current liability section of Filbert Corporation’s
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Financial Accounting (12th Edition) (What's New in Accounting)
- On October 1, 2021, Oberley Corporation loans one of its employees $25,000 and accepts a 12-month, 8% note receivable. Calculate the amount of interest revenue Oberley will recognize in 2021 and 2022. Interest Year Revenue 2021 2022arrow_forwardFill all requirements please.arrow_forwardCharm Company estimates its annual warranty expense as 2% of annual net sales. The following data relate to calendar year 2019. Net Sales P 3,200,000 Warranty Liability account: Balance, Jan. 1, 2019 10,000 debit before adjustment Balance , Dec. 31, 2019 54,000 credit after adjustment. Which of the following entries was made to record the 2019 estimated warranty expense? * A.Debit Warranty Expense 64,000 and Credit Estimated liability under warranties 64,000 B.Debit warranty Expense 64,000 Credit Accumulated profits/losses 10,000 and Estimated liability under warranties 54,000 C.Debit Warranty Expense 54,000 and Accumulated profits/losses 10,000 and Credit Estimated liability under warranties 64,000 D.Debit Warranty Expense 44,000 and Credit Estimated liability under warranties 44,000arrow_forward
- How much should be reported in the December 31, 2020 balance sheet as total liabilities? *see attached picture a. P 7,210,000b. P 7,005,000c. P 6,960,000d. P 6,672,000arrow_forwardCensider the following note payable transactions of Cargo Video Productions. D(Click the icon to view the transactions.) Requirements 1. Journalize the transactions for the company. Considering the given transactions only, what are Cargo Video Productions' total liabilities on December 31, 2019? 2. X Select explanations on the last line More Info he note requires annual principal pa Credit 2018 Oct. 1 Purchased equipment costing $40,000 by issuing a five-year, 9% note payable. The note requires annual principal payments of $8,000 plus interest each October 1. Dec. 31 Accrued interest on the note payable. 2019 Oct. 1 Paid the first installment on the note. Dec. 31 Accrued interest on the note payable. Print Done 4arrow_forwardWhat is the Required 1-3?arrow_forward
- (Learning Objective 3: Account for a short-term note payable) On June 1, 2019,Franklin Company purchased inventory costing $90,000 by signing an 8%, nine-month,short-term note payable. Franklin will pay the entire note (principal and interest) on the note’smaturity date. Journalize the company’s (a) purchase of inventory and (b) accrual of interest onthe note payable on December 31, 2019.arrow_forwardMackenzie Corp, is preparing the December 31, 2020, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability Income tax expense Mortgage payable, 6% $ 6,470 120-day note payable, 5% Unearned revenues Warranty expense 119,900 445,000 $ 81,000 297,000 6,500 Additional information: a. $10,900 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $127,040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $141,000 given similar cases in the industry. c. During December, Mackenzie had sales of $711,000. 4% of sales typically require warranty work equal to 25% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $111,600 of the Unearned Revenues remain unearned at…arrow_forwardDALLAS Corp. is preparing the December 31, 2020, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability $ 6,490 120-day note payable, 3% $ 83,000 Income tax expense 122,100 Unearned revenues 299,000 Mortgage payable, 4% 450,000 Warranty expense 6,700 Additional information: a. $11,100 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $129,040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $143,000 given similar cases in the industry. c. During December, DALLAS had sales of $713,000. 4% of sales typically require warranty work equal to 20% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $111,800 of the Unearned Revenues remain unearned at December…arrow_forward
- (Learning Objectives 4, 5: Apply GAAP for receivables and uncollectiblereceivables) Suppose Easton, Inc., reported net receivables of $2,582 million and $2,260 millionat January 31, 2019, and 2018, respectively, after subtracting allowances of $72 million and $67million at these respective dates. Easton earned total revenue of $43,333 million (all on account)and recorded uncollectible-account expense of $13 million for the year ended January 31, 2019.Requirement1. Use this information to measure the following amounts for the year ended January 31, 2019:a. Write-offs of uncollectible receivables b. Collections from customersarrow_forwardAlex Corporation has the following account balances on December 31, 2020: Accounts receivable ₱ 400,000 Allowance for uncollectible accounts 8,400 Alex completed the following transactions in 2019: Net credit sales, ₱ 4,000,000. Collections on accounts, ₱ 3,870,000. Write-off of uncollectible accounts, ₱ 10,000. Recovery of accounts previously written-off, ₱ 2,000. Uncollectible accounts expense, 2/3 of 1% of net credit sales. REQUIRED: 1. Journalize the foregoing transactions. 2. Compute the balance of accounts receivable and allowance for uncollectible accounts at December 31, 2020. What amount of Accounts receivable, net would Alex report on its December 31, 2020 balance sheet? 3. Assume that Alex uses the aging of accounts instead of the percent of sales method in estimating uncollectible accounts. Analysis indicates that Php 30,800 of outstanding accounts on December 31, 2020 may prove to be uncollectible. Compute the uncollectible accounts expense and the…arrow_forward(Learning Objective 5: Apply GAAP for uncollectible receivables) AtDecember 31, 2018, Concord Travel Agency has an Accounts Receivable balance of $87,000.Allowance for Uncollectible Accounts has a credit balance of $880 before the year-end adjustment. Service revenue (all on account) for 2018 was $800,000. Concord estimates that itsuncollectible-account expense for the year is 3% of service revenue. Make the year-end entryto record uncollectible-account expense. Show how Accounts Receivable and Allowance forUncollectible Accounts are reported on the balance sheet at December 31, 2018arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College