MC 13.69 – Gray Co.
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Given the gain contingency and the loss contingency… find the net assets.
Given the gain contingency and the loss contingency… find the net assets.
Given that there’s a chance that a customer wins a case, gives you the numbers in the best and worst-case… find the liability amount that should be accrued.
Given the expected warranty as a percentage of net sales, the net sales, and the replacement cost… find the warranty expense on the income statement.
Given the amount of a loan, the months of credit issued, and the promissory note percent… prepare journal entries for the issuance of the note along with determining the effective interest rate.
Given an a through g list of transactions… prepare journal entries for each of the items while also preparing the current and long-term sections of the balance sheet.
Given the end-of-year account balances along with other information regarding the issuance of notes and credit balances… prepare adjusting journal entries along with preparing the current and long-term liabilities section of the balance sheet.
Given the percentage of income that a bonus is worth, the income with no bonus or tax, and the tax rate… express the formulas algebraically, calculate the bonus, prepare adjusting entries, and determine the bonus before tax.