The New York Knicks, Inc. sold 10,000 season tickets at$2,000 each. By December 31, 2017, 16 of the 40 homegames had been played. What amount should be reportedas a current liability at December 31, 2017?
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The New York Knicks, Inc. sold 10,000 season tickets at
$2,000 each. By December 31, 2017, 16 of the 40 home
games had been played. What amount should be reported
as a current liability at December 31, 2017?
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- For each of the following situations, indicate the liability amount, if any, which is reported on the balance sheet of Hirst Inc. at December 31, 2015.a. Hirst owes $110,000 at year end 2015 for its inventory purchases.b. Hirst agrees to purchase a $28,000 drill press in January 2016.c. During November & December 2015, Hirst sold products to a firm with a 90 day warranty against product failure. Estimate 2016 costs of honoring the warranty are $2,200. d. Hirst provided a profit-sharing bonus for its executives equal to 5% of its reported pre-tax annual income. The estimated pretax income for 2015-is $500,00. Bonuses are not paid until January of the following year.On March 1, ABX Company’s assets are $100,000 and its liabilities are $30,000. On March 5, ABX is fined $15,000 for failing emission standards. ABX immediately pays the fine in cash. After the fine is paid, what is the amount of equity for ABX?Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31, 2017. During December, Superior sold 6,500 skateboards that carry a 60-day warranty. The skateboard sales totalled $390,000. The company expects 8% of the skateboards will need repair under warranty and it estimates that the average repair cost per unit will be $38. ques- Superior needs to record previously unrecorded cash sales of $2,100,000 (cost of sales 65%) plus applicable HST. Form journal entry.
- Caroline company sells equipment service contracts that cover a two-year period. The sale price of each contract is P600. The past experience is that, of the total pesos spent for repairs on service contracts, 40% is incurred evenly during the first contract year and 60% evenly during the second contract year. The entity sold 1,000 contracts evenly throughout 2017. What amount should be reported as deferred contract revenue on December 31, 2017?On March 15, 2014, Rex Company paid property taxes of P180,000 on the factory building for calendar year 2014. On April 1, 2014, the entity made P300,000 in unanticipated ordinary repairs to plant equipment. What total amount of these expenses should be included in the quarterly income statement ending June 30, 2014?On March 1, ABX Company’s assets are $100,000 and its liabilities are $30,000. On March 5, ABX is fined $15,000 for failing emission standards. ABX immediately pays the fine in cash. After the fine is paid, what is the amount of equity for ABX? (Negative amounts should be indicated by a minus sign.)
- During 2016, Manfred company guaranteed a supplier’s 500,000 loan from a bank. On Oct. 1, 2017, Manfred was notified that the supplier had defaulted on the loan and filed for bankruptcy protection. Counsel believes Manfred will probably have to pay 250,000 under its guarantee. As a result of the supplier’s bankruptcy, Manfred entered into a contract in Dec. 2017 to retool its machines so that Manfred could accept parts from other suppliers. Retooling costs are estimated to be 300,000. What amount should Manfred report as a liability in its Dec. 31, 2007 balance sheet?On January 1, 2020, the ledger of Lily Company contains the following liability accounts. Accounts Payable $55,500 Sales Taxes Payable 8,500 Unearned Service Revenue 17,000 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $11,500. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2019 ($8,500). 20 Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty. 21 Borrowed $29,250 from Girard Bank on a 3-month, 8%, $29,250 note. 25 Sold merchandise for cash totaling $7,776, which includes 8% sales taxes. Journalize the January transactions.On January 1, Lumia Company’s liabilities are $70,000 and its equity is $50,000. On January 3, Lumia purchases and installs solar panel assets costing $20,000. For the panels, Lumia pays $9,000 cash and promises to pay the remaining $11,000 in six months. What is the total of Lumia’s assets after the solar panel purchase?
- Tim’s Donuts has 10 employees who are paid $20 per hour. The company purchases its inventory, on account, daily. At December 31, 2021, each of Tim’s Donuts’ employees had worked 15 hours which had not been paid or recorded. Also on this date, the company had taken receipt of $80,400 of inventory from its suppliers which had not been recorded in the accounts. As of the beginning of 2021, the company had equipment totaling $2,650,000 which was depreciated at $265,000 per year. Prior to adjustments, the company’s trial balance showed $310,550 in the wage expense account and $110,375 of inventory. If Tim's Donuts makes the appropriate adjusting entry, how much will be reported on the December 31, 2021, balance sheet as inventory? Select one: A. $345,400 B. $110,375 C. $190,775 D. $80,400Tim’s Donuts has 10 employees who are paid $20 per hour. The company purchases its inventory, on account, daily. At December 31, 2021, each of Tim’s Donuts’ employees had worked 15 hours which had not been paid or recorded. Also on this date, the company had taken receipt of $80,400 of inventory from its suppliers which had not been recorded in the accounts. As of the beginning of 2021, the company had equipment totaling $2,650,000 which was depreciated at $265,000 per year. Prior to adjustments, the company’s trial balance showed $310,550 in the wage expense account and $110,375 of inventory.If Tim's Donuts makes the appropriate adjusting entry, how much will be reported on the December 31, 2021, balance sheet as inventory?Select one:A. $345,400B. $110,375C. $190,775D. $80,400On January 1, Lumia Company’s liabilities are $65,000 and its equity is $45,000. On January 3, Lumia purchases and installs solar panel assets costing $15,000. For the panels, Lumia pays $6,500 cash and promises to pay the remaining $8,500 in six months. What is the total of Lumia’s assets after the solar panel purchase? answer is 118,500