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

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