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Accounting for Liabilities

Comparative Benefits of an LLC

Match the following entity forms with the additional benefits offered by a limited liability company (LLC) compared with the entity form. a. ability of owners to have limited liability b. ability to pass tax attributes through to the owners c. right of all owners to participate in the management of the business d. greater fl

finding the existence of liabilities and partnerships and SPEs

Enron is a large energy trading company that allegedly committed massive fraud. Enron's primary method of committing fraud was to record liabilities in related partnerships then known as special purpose entities that were not consolidated, or combined, with Enron's financial statements. Company executives have maintained that th

Note Issuance and the Effect on Financial Statements

A business issued a 30-day, 4% note for $60,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording A. the issuance of the note and B. the payment of the note at maturity,including interest.

Wrongful death lawsuit against Roberto Martinez personally vs the corporation

Roberto Martinez was the sole force behind In Over Our Heads, Inc, a corporation designed to run a year round community swimming pool. The enterprise was incorporated in the correct manner in January, with Martinez as the sole director and shareholder. Martinez contributed $ 100,000 of starting capital, which was just enough to

Kohl Co.: Estimate Warranty Liability and Expense

Kohl Co. provides warranties for many of its products. The January 1, 2010, balance of the Estimated Warranty Liability account was $70,400. Based on an analysis of warranty claims during the past several years, this year's warranty provision was established at 0.4% of sales. During 2010 the actual cost of servicing products und

Types of Equity Accounts and Current Liability

What are the types of equity accounts? What is the role of equity accounts in raising capital? Under what circumstances would you not pay a dividend? Under what circumstances would you pay a dividend? What is a current liability? What is a noncurrent liability? What is the difference between the two types of liabilities? In

Financial Accounting P11-1A Prepare current liability entries, adjusting entries, and current liabilities section for Mane Company. P11--2A Journalize and post note transactions; show balance sheet presentation for Winsky Company.

Also see attached files. P11-1A Prepare current liability entries, adjusting entries, and current liabilities section. On January 1, 2008, the ledger of Mane Company contains the following liability accounts. Accounts Payable $52,000 Sales Taxes Payable 7,200 Unearned Service Revenue 16,000 During January the fol

Contingent Liability Footnote: Are All Liabilities Revealed

Why do you think the Altria Group Annual report has so much discussion of contingencies? Based on your brief review of the contingencies note, are you confident that Altria Group has reported all its liabilities? Why or why not? Here is the footnote: http://thomson.mobular.net/thomson/7/2592/3076/

Sale, Payment of Liabilities, and Liquidation of Interest

At the end of the year, Ruth has retired from the partnership, and Paul has joined it. However, the partnership is not going well. Tribbs, Bob, and Paul have decided to liquidate the partnership. Paul is a little concerned. While Tribbs has plenty of money, Bob is personally insolvent. The partnership sells the apartment buildin

Warranty Obligations - Athletic Accountant Company

Please explain how you solve this question. Thanks! The Athletic Accountant Company produces exercise equipment for accountants. Its main product, the Pencil-Pusher Push-Up Platform, is sold with a three-year warranty against defects. The company expects that 1% of the units sold will prove to be defective in the first year a

Missing Financial Statement Values

I was able to calculate the other values, but I am unable to find Total Assets: Beginning of year, and Total Liabilities: end of year. Please explain how to find those values. Additional investments made by shareholders during the year $4,000 Revenues 22,900 Expenses 17,900 Net income 5000 Divi

Decision Case: Hewlett-Packard's Contingent Liability

Following is an excerpt from Hewlett-Packard's notes that accompanied its financial statements for the year ended October 31, 2008: Search v. HP is a consumer class action filed against HP on October 28, 2003 in Illinois state court alleging that HP has included an electrically erasable programmable read only memory (EEPROM) ch

Assets and liabilities

If a company has $181K (this means $181,000) in total liabilities and $225K in total assets, what percentage of total assets is being financed with the use of others' money? Show your calculations and explain.

Assess product liability damages as sole prop, partnership

A business entity has the following assets and liabilities on its balance sheet: Net Book Value Fair Market Value Assets 675000 950000 Liabilities 100000 100000 The business entity has just lost a product liability suit with damages of $5 million being awarded to the plaintiff. Although the bu

Acccounting Capitalizing Vs Expensing & Accrued Liabilities

) E6.3 Capitalizing versus Expensing For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. Explain your answers. a.) $15,000 annual cost of routine repair and maintenance expenditures for a fleet of delivery vehicles. b.) $60,000 cost to develo

Income tax assets and liabilities

Please see the attached file. Barnes and Noble Accounting for Income Taxes & Pension Plans 1. On tab 5 of your Excel file, report on any income tax assets and liabilities (and their respective amounts) on the balance sheet of your company. Also present the amount of income tax expense paid for the period. 2. On tab 6

Potential civil liability to the share¬holders and creditors

Please help with answering the problem below: Conan Doyle & Associates (CD&A), CPAs, served as the auditors for Lestrad Corporation and Watson Corporation, publicly held companies traded on MASDAO. Watson recently acquired Lestrad Corporation in a merger that involved swapping 1.75 shares oi' Watson For I share of Lestrad. In

Accounting for fictional company

1. Highland Company had the following question regarding reporting of contingencies on their financial statements for the year 2007: a. They were being sued by local residents for negligence causing local residents to become ill from toxic chemicals used at its plant. Highland attorneys state that it is probable that they wi

Current & Long Term Liabilities

I need help figuring out how to get the info and then put it all together. Current & Long Term Liabilities 1. Select a publicly traded corporation which interests you that you would like to learn more about. Choose carefully as you will be "stuck" with this company for the duration of the term! I would like to do Barnes & N

Various Current Liabilities

Alex Rodriguez Inc., a publishing company, is preparing its December 31, 2008, financial statements and must determine the proper accounting treatment for the following situation; they have retained your group to assist them in this task. (a) Rodriguez sells subscriptions to several magazines for a 1-year, 2-year, or 3-year p

Liabilities

1. For each of the following situations, indicate the liability amount, if any, that is reported on the balance sheet of Company X at December 31, 2007. (a) Company X owes $110,000 at year-end 2007 for its inventory purchases. (b) Company X agreed to purchase a $28,000 drill press in January 2008. (c) Company X provides a p