Item Recognition of Liability? (Must type yes or no) Account Name (choose the correct answer) $ Measurement Amount (don't put $ sign or MM for example 1MM should be listed as 1) Current or Noncurrent 1. Nike agrees to purchase a plot of land in the future on which it will build a factory for $5MM. 2. Nike places a $50MM order from one of its suppliers. They did not pay any cash for the order. The supplier is completing the manufacturing of the goods and will ship them within six months. 3. Nike signs a 5-year employment offer with an incoming CFO for $15MM salary and stock options. They have not paid the CFO any cash. The CFO will start in two months. 4. Nike receives a check of $12MM from a store for merchandise that it will ship to the store in 90 days. 5. The supplier from above (with the $50MM order) ships the goods to Nike and sends an invoice. Nike obtains ownership of the goods when they arrive. The goods should arrive in less than 14 days.

Item Recognition of Liability? (Must type yes or no) Account Name (choose the correct answer) $ Measurement Amount (don't put $ sign or MM for example 1MM should be listed as 1) Current or Noncurrent 1. Nike agrees to purchase a plot of land in the future on which it will build a factory for $5MM. 2. Nike places a $50MM order from one of its suppliers. They did not pay any cash for the order. The supplier is completing the manufacturing of the goods and will ship them within six months. 3. Nike signs a 5-year employment offer with an incoming CFO for $15MM salary and stock options. They have not paid the CFO any cash. The CFO will start in two months. 4. Nike receives a check of $12MM from a store for merchandise that it will ship to the store in 90 days. 5. The supplier from above (with the $50MM order) ships the goods to Nike and sends an invoice. Nike obtains ownership of the goods when they arrive. The goods should arrive in less than 14 days.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 1PA: Consider the following situations and determine (1) which type of liability should be recognized...

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Item	Recognition of Liability? (Must type yes or no)	Account Name (choose the correct answer)	$ Measurement Amount (don't put $ sign or MM for example 1MM should be listed as 1)	Current or Noncurrent
1. Nike agrees to purchase a plot of land in the future on which it will build a factory for $5MM.
2. Nike places a $50MM order from one of its suppliers. They did not pay any cash for the order. The supplier is completing the manufacturing of the goods and will ship them within six months.
3. Nike signs a 5-year employment offer with an incoming CFO for $15MM salary and stock options. They have not paid the CFO any cash. The CFO will start in two months.
4. Nike receives a check of $12MM from a store for merchandise that it will ship to the store in 90 days.
5. The supplier from above (with the $50MM order) ships the goods to Nike and sends an invoice. Nike obtains ownership of the goods when they arrive. The goods should arrive in less than 14 days.