Ch8 - 8-6a $897,500b $551,875c $97,500d $410,5008-7a...

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Unformatted text preview: 8-6a) $897,500b) $551,875c) $97,500d) $410,5008-7a) Discountb) Par valuec) Premiumd) Discount8-161)Warranty Expense… 9000Estimated Warranty Payable… 9000Estimated Warranty Payable… 9400Cash… 94002) Income Statement:Sales Revenue… 150,000Warranty Expense… 9000Balance Sheet:Current Liabilities:Estimated Warranty Payable (8000 + 9000 - 9400)… 76003) Estimated Warranty Payable (current liability); Decrease8-17Cash… 1560Sales Revenue… 1500Sales Tax Payable… 60Sales Tax Payable… 60Cash… 60Unearned Subscription Revenue (1500*4/12)… 500Subscription Revenue… 500Balance SheetCurrent Liabilities:Unearned Subscription Revenue (1500-500)… 10008-221) L&M should put a note like Note 14 in their financial statements2) L&M should record the liability.Estimated Expense… 2,000,000Estimated Liability… 2,000,000(Note 14)Income Statement:Estimated Expense… 2,000,000Balance Sheet:Estimated Liability… 2,000,00018-26Semiannual Interest DateInterest Payment (3.5% * 400,000)...
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This note was uploaded on 08/30/2011 for the course ACG 2021 taught by Professor Hornik during the Fall '08 term at University of Central Florida.

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Ch8 - 8-6a $897,500b $551,875c $97,500d $410,5008-7a...

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