Ch10HW - a b c d e Accounts Payable Not recorded as a liability Estimated liability for product warenty Dividends Payable Bonuses Payable $110,000

Ch10HW - a b c d e Accounts Payable Not recorded as a...

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a. Accounts Payable $110,000 b. Not recorded as a liability c. Estimated liability for product warenty $2,200 d. Dividends Payable $70,000 e. Bonuses Payable $30,000
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Current Liability An accountable transaction has not yet occurred. Current Liability Current Liability Current Liability
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B. A. B.
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Although the likelihood of default is low, disclosure is required for credit guarantees. Both accrual and disclosure is required since the likelihood is probable and the amount is estimable. Disclosure is required because the amount is deemed possible, but not probable.
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General Journal Date Description a. Apr. 8 Accounts Payable- Bennett Co. Notes Payable- Bennett Co. Issued a $4800 note payable. 15-May Cash Notes Payable- Lincoln Bank Borrowed $36000 from bank for 60 days at 9%. 22-Jun Notes Payable- Bennett Co. Interest Expense Cash Paid the principal and interst due on the April 8th note payable. 6-Jul Inventory Notes Payable- Bolton Co. Purchased $12000 of merchandise and issued a 90 day note with 10% interest.
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  • Fall '16
  • David Drews
  • Generally Accepted Accounting Principles, Default, Promissory note, Lincoln Bank

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