What is the liability for the outstanding premiums at year-end? *
Q: What is current Liability Select one: O a. A debt that the company expects to pay After one year O…
A: SOLUTION- CURRENT LIABILITY- CURRENT LIABILITIES ARE THE COMPANY SHORT TERM FINANCIAL OBLIGATIONS…
Q: Assuming a 360-day year, when a $11,918, 90-day, 10% interest-bearing note payable matures, total…
A: A note payable is a written promissory note. Under this agreement, a borrower borrows a specific…
Q: *How much is the ending balance of Installment Receivable as of Dec 31, 2021? *How much is the…
A: An installment sale is one kind of several methods for revenue recognition under the guidelines…
Q: The premium on a four-year insurance policy expiring on december 31, 2034 was paid in total on…
A: Prepaid assets is one of the current asset of the business, which means expenses which are related…
Q: What is equivalent annual annuity (EAA) method?
A: Equivalent annual annuity (EAA): Equivalent annual annuity measures the annual payments a scheme…
Q: Debt due within one year is considered: A . current.
A: Debt due within one year is considered
Q: The accrued obligation at the beginning of the year was S456,000 and the current service cost for…
A: Formula: Interest amount = Accrued Beginning obligation amount x Interest rate
Q: A debt of $1908 with interest at 6.3% compounded annually is to be repaid by equal payments at the…
A: Solution:- When a loan is taken, it is to be repaid in lump sum or in installments. If it is paid in…
Q: What is the estimated liability for premium claims outstanding at December 31, (2002? Requirements:…
A: calculation for premium expenses and estimated liability are as follows
Q: What are the three components of the interest formula?Explain how this formula adjusts for interest…
A: Interest: The money charged by the lender for using lender’s funds is referred to as interest. So,…
Q: ties: rent liabilities e payable, 6%, due in 15 years al liabilities holders' equity:
A: (a)Ratio of fixed assets to long-term liabilities = $1426600/$1019000= 1.4 times OR 140%(b)Ratio of…
Q: Which of the following items is most likely a short-term liability? Select one: a. Finance lease…
A: Answer is option c) Accounts payable
Q: the interest rate of a certain account ia 6.5%, compute the (a) single payment present worth factor;…
A: In this we have determine the present value factor and future value factor.
Q: What amount should be reported as liability for coupons on December 31, 2021?
A: Rather than a duty to deliver cash or another financial asset, non-financial obligations are…
Q: Debts listed as current liabilities are those that a.are due to be paid in more than one year…
A: Debts is refers to the particular sum of money that is being borrowed by one party from another…
Q: The term of the note stated maker as a fraction of a year. The principal of the note plus interest.…
A: Introduction: Interest amount: Interest amount is calculated on Principal amount with interest rate.
Q: Find the equivalent annual payment of the following obligations at 20% interest. End of Year…
A: Annual interest rate = 20% Calculation of present value Year Cash flow PVF(20%,Year) Present…
Q: What is the total current liabilities to be presented in the statement of financial position as of…
A:
Q: What amount should be recorded as accrued liability on December 31, 2021 in relation to this event?
A: Accrued liability refers to that expenses have been incurred but not paid during an accounting…
Q: How much is the warranty expense in 2021?
A: Simon Corporation Selling a new line of products that’s carry a two year warranty against defects…
Q: From page 8-1 of the VLN, what makes a liability a current liability? O It matures more than a year,…
A: Current liabilities are the liabilities that needs to be settle in cash within a Financial year.…
Q: 1. What is the premium expense for the current year? 2. What amount should be reported as estimated…
A: As per accrual concept of accounting, all revenues and expense for the particular period should be…
Q: Which of the items are normally classified as current liabilities for a company that has a…
A: Current liabilites are those Liabiliites which are to paid in within next year or within the…
Q: Current liabilities are: Oa. due but not payable for more than one year. Ob. due but not receivable…
A: Current liabilities are all those that are payable within one year such as accounts payable, notes…
Q: By how much is the refundable deposit over or (under)stated at year end 2020?
A: A refundable deposit is a security deposit collected from the tenants towards adjustment for any…
Q: What is the exact simple interest earned on P 35, 000 for the period from April 3, 2020 to October…
A: Principal amount (P) = P35000 Period from April 3,2020 to October 14,2020 (d) = 163 days Interest…
Q: How much is the contract revenue to date in the year 2019? (In a good accounting form)
A: A company has to recognize revenue and expenses in the year they are earned and incurred,…
Q: 3. What is the lease liability at year-end?
A: As per Bartleby guidelines, in case of multi-part questions, we are only allowed to answer the first…
Q: True
A: A non current liability refers to the financial obligation of a company that are not expected to be…
Q: how do an annual bonus paid at year end be treated under IAS34 and how does this treatment differ…
A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…
Q: The liability that is due after more than one year is called as a. Long-term liability
A: The liability that is due after more than one year is called as "Long term liability". This is…
Q: annualy. a What is the sie of the morchly payments bị How much interest is paid during the first…
A: loan =248000 Period =35years interest =8.12%
Q: How would an annual bonus paid at year-end be treated under IAS 34 and how does this treatment…
A: Under IAS 34 year-end bonus varies in a wide range. Some of them are regularly earned in the…
Q: warranty with its product or service show an expense in the year of sale
A: Matching principle urges an entity to recognize expense , the period during which related revenue is…
Q: What amount should be reported as premium expense for the current year?
A: Premium (Gift) means the product given free of cost to the customer on fulfilling the certain…
Q: e contract revenue yo da
A: The percentage of completion method is a method of recognizing revenue of long-term contract or…
Q: 5. Which of the following is a characteristic of a current liability? OA current liability must be…
A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…
Q: Calculate the annual net premium (paid at the beginning of each year) and the net premium reserve at…
A: Multiple decrement models are the models which shows the causes of various decrements during the…
Q: For the case shown in the following table, determine the amount of the equal, end of year deposits…
A: Future value (FV) = $ 124,600 Period (n) = 20 Annual interest rate (r) = 11%
Q: 0,000.00 with int
A: Obligation refers to the act by which an entity is legally bound to act Or behave to complete the…
Q: how do an annual bonus paid at year end be treated under IAS 34 and how does this treatment differ…
A: International Accounting Standard( IAS) is one of the older accounting standards which is issued by…
Q: what is the annual insurance loss ratio formula?
A: The insurance loss ratio is calculated to know the profits that an insurance company can earn over a…
Q: What amount of loss should DEF accrue at December 31, 2021?
A: Contingent liability refers to those liability of a company which is occurred due to the result of…
Q: Which of the items are normally classified as current liabilities for a company that has a…
A: The entity needs to classify the components of the balance sheet into the current and non-current…
Q: Considering the amortisation schedule, what is the percentage, rounded to two decimal places, of the…
A: First we need to know the net home payable amount Edwill Purchased a new home Cost is R110790000…
a. 2,000,000
b. 562,500
c. 2,250,000
d. 500,000
Step by step
Solved in 2 steps
- Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master Industries (the manufacturer) has agreed to accept $23,500 at the end of each of the next 4 years. Based on this deal, how much interest will Grummet pay over the life of the loan? A. $94,000 B. $80,000 C. $23,500 D. $14,000Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?Cash Rebates On January 1, 2020, Fro-Yo Inc. began offering customers a cash rebate of 5.00 if the customer mails in 10 proof-of-purchase labels from its frozen yogurt containers. Eased on historical experience, the company estimates that 20% of the labels will be redeemed. During 2020, the company sold 5,000,000 frozen yogurt containers at 1 per container. From these sales, 800,000 labels were redeemed in 2020, 150,000 labels were redeemed in 2021, and the remaining labels were never redeemed. Required: 1. Prepare the journal entries related to the sale of frozen yogurt and the cash rebate offer for 2020 and 2021. 2. Next Level Assume that 300,000 labels were redeemed in 2021. Prepare the journal entries related to the cash rebate offer for 2021.
- Blake Department Store sells television sets with one-year warranties that cover repair and replacement of television parts. In the month of June, Blake sells forty television sets with a per unit cost of $500. If Blake estimates warranty fulfillment at 10% of sales, what would be the warranty liability reported in June? A. $1,000 B. $2,000 C. $500 D. $20,000Now assume that it is several years later. The brothers are concerned about the firm’s current credit terms of net 30, which means that contractors buying building products from the firm are not offered a discount and are supposed to pay the full amount in 30 days. Gross sales are now running $1,000,000 a year, and 80% (by dollar volume) of the firm’s paying customers generally pay the full amount on Day 30; the other 20% pay, on average, on Day 40. Of the firm’s gross sales, 2% ends up as bad-debt losses. The brothers are now considering a change in the firm’s credit policy. The change would entail: (1) changing the credit terms to 2/10, net 20, (2) employing stricter credit standards before granting credit, and (3) enforcing collections with greater vigor than in the past. Thus, cash customers and those paying within 10 days would receive a 2% discount, but all others would have to pay the full amount after only 20 days. The brothers believe the discount would both attract additional customers and encourage some existing customers to purchase more from the firm—after all, the discount amounts to a price reduction. Of course, these customers would take the discount and hence would pay in only 10 days. The net expected result is for sales to increase to $1,100,000; for 60% of the paying customers to take the discount and pay on the 10th day; for 30% to pay the full amount on Day 20; for 10% to pay late on Day 30; and for bad-debt losses to fall from 2% to 1% of gross sales. The firm’s operating cost ratio will remain unchanged at 75%, and its cost of carrying receivables will remain unchanged at 12%. To begin the analysis, describe the four variables that make up a firm’s credit policy and explain how each of them affects sales and collections.At the beginning of the current year, Clan Company offers the customers a pottery bowl if they send in three boxtops from the products and P10. The entity estimated that 60% of the boxtops would be redeemed.During the year, the entity sold 675,000 boxes and customers redeemed 330,000 boxtops receiving 110,000 bowls. The cost of each bowl is P 25.What is the liability for outstanding premium at year-end?
- Lex Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Cute Company boxes and P 1. The company estimates that 60% of the boxtops will be redeemed. In 2020, the company sold 675,000 boxes of Lex Company and customers redeemed for 330,000 boxtops receiving 110,000 bowls. If the bowls cost Lex Company P 3 each, how much liability outstanding premiums should be recorded at the end of 2020? a. P 270,000b. P 50,000c. P 75,000d. P 138,000Company M uses the cost recovery method. During 19A, it sells goods with a cost of $15,000 for $25,000, payable in installments of $10,000, $10,000 and $5,000, respectively, beginning in 19A. How much profit should be recognized each year?Sweet Dates Company offers a premium to its customers—a glass bowl (cost to Sweet Dates is $0.90) upon return of 40 coupons. Two coupons are placed in each box of dates sold. The company estimates, on the basis of past experience, that only 70% of the coupons will ever be redeemed. During 2019, 10 million boxes of dates are sold at $0.30 each. Eight million coupons are redeemed during 2019. Sweet Dates purchased 360,000 glass bowls for the plan on January 1, 2019. Required: 1. Prepare the journal entries related to the sale of dates and the premium plan in 2019. 2. Show how the preceding items would be reported on the December 31, 2019, balance sheet.
- During 2020, Gray Company sold 500,000 boxes of cake mix under a new sales promotional program. Each box contained one coupon, which entitled the customer to a baking pan upon remittance of P40. The entity paid P50 per pan and P5 for handling and shipping. The entity estimated that 80% of the coupons will be redeemed, even though only 300,000 coupons had been processed during 2020. 2a. What amount should be reported as premium expense for 2020? a. P 2,000,000 b. P 4,500,000 c. P 6,000,000 d. P 7,500,000 2b. What amount should be reported as liability for unredeemed coupons on December 31, 2020? a. 1,000,000 b. 1,500,000 c. 3,000,000 d. 5,000,000Fry Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Fry boxes and P2. The company estimates that 60% of the boxtops will be redeemed. In 2020, the company sold 675,000 boxesof Fry and customers redeemed 330,000 boxtops receiving 110,000 bowls. If the bowls cost Fry Company P6each, how much liability for outstanding premiums should be recorded at the end of 2020?a. P540,000 c. P150,000b. P100,000 d. P276,000Energetic Company includes one coupon in each box of laundry soap it sells for P500 each. A towel costing P100 and with a selling price of P120 is offered as a premium to customers who send in 10 coupons and a remittance of P20. The following are the information available (see image below).Energetic’s experience indicates that only 30% of the coupons will be redeemed. (Do not round off during computation)How much is the Total Revenue to be recognized in 2021?