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Accounting for Liabilities

Warranty Liabilities and Net Sales

1. .A decrease in warranty liabilities increases net sales. Why? a. True b. False 2. .A company with anticipated earnings-per-share growth is worth more. Why? a. True b. False 3. .A reduction in the advertising expense ratio increases return on common equity and share value. Why? a. True b. False 4. .An underestim

Liabilities for a school district

Lincoln Elementary school is a new school located in a suburb that is close to Big Cold Northern City. You are a teacher at the school and you are in charge of the end of day pick up of children from the school. The "end of day" pickup extends for several hours due to a child care center located at the school. The school has

FCC Ruling

See the attached file. I am writing a paper about a current event as it pertains to business law. The topic is the recent ruling from the Federal Communications Commission FCC 07-232. The ruling clarifies the use of automated dialers by collections agencies to contact customers on their wireless phones. I am trying to inclu

Accounting Questions: Sales Tax, Long/Short Term Liabilities

What are the ramifications to a business of not tracking and paying sales tax? What is the difference between accounts payable and accrued expenses? Is short-term or long-term debt more stressful to your personal finances? Why? Why is it important to differentiate between short-term and long-term liabilities?

Assets, Liabilities, Equity

Please fill in the spreadsheet (Spreadsheet PA2-1.xls)with the data provided. Attached in a word document is the information and data compiled (Team Problem.doc).

Net effect on assets, liabilities and equity - MBA Program

Indicate the net effect on assets, liabilities, and owners' equity resulting from each of the following transactions: 1. Capital stock was issued for $100,000 cash. 2. Bonds payable of $25,000 were refunded with capital stock. 3. Depreciation on plant and equipment equaled $8,500 for the year. 4. Inventory was purchased fo

Contingent Liability

What is an example of a situation that requires the establishment of a contingent liability? Why should a company establish a contingent liability? How does the establishment of a contingent liability impact earnings? What is an example of a potentially unethical accounting situation? Why is the situation unethical? How do e


Can you help me get started with this assignment? 1. Explain the difference in owner's liability for the general business debts of a limited liability company (LLC) and a limited liability partnership (LLP). 2. What is the difference between an interpretive regulation and a legislative regulation? 3. What is the tax b

Auditing problems (Accounts Payable and other liabilities)

In the course of your initial audit of the financial statements of Sylvan Company, you determine that of the substantial amount of accounts payable outstanding at the close of the period, approximately 75% is owed to six creditors. You have requested that you be permitted to confirm the balances owing to these six creditors by c

Journal Entries for Borrowed Money

The Houston Company borrows $200,000 on August 7 with a year note at 5% interest. Prepare the journal entry to record the proceeds from the note, the accrued interest at 12/31 assuming all the interest is made at year end. The Houston Company also has a 10 year long term note at an initial value of $1,000,000, 5% interest/ye

Deferred Tax Assets and Deferred Tax Liabilities

How are deferred tax assets and deferred tax liabilities derived? How do they relate to the difference between tax expense and taxes payable? How could an organization have a tax receivable? Why is the tax expense reported on the income statement comprised of current and deferred tax?

Analysis of Balance Sheets

Your help is needed. Listed below are annual balance sheets for ExxonMobil and Wal-Mart. ExxonMobil Annual Balance Sheet Assets $Mil Liabilities and Equity $Mil Cash 37,734.00 Current Liabilities 54,804.00 Other Current Assets 49.01

Identify Whether Obligations are Current Liabilities

Please help with the following problem. Provide step by step calculations. Cardinal Co. has the following obligations at Dec. 31st: (a) a note payable for $100,000 due in 2 yrs., (b) a 10 yr mortgage payable of $300,000 payable in ten $30,000 annual payments, (c) interest payable of $15,000 on the mortgage, and (d) accounts

Current liabilities and contingencies - Journal Entries

Please show work and follow GAAP unless otherwise stated The following selected transactions relate to contingencies of Eastern Products Inc. which began operations in July, 2006. Eastern's fiscal year ends on December 31. Financial statements are published in April 2007. (a) No customer accounts have been shown to be unco

Description about liabilities and GAAP

What are the criteria for classifying an item as a current liability? What are some examples of current liabilities? Why is it important to classify a portion of long-term debt on a yearly basis as a current liability? What is the implication of misclassifying a liability as current or long-term? Generally accepte

Accounting for Long-Term Liabilities for Rubotics Corporation

Rubotics Corporation issued $1,000,000 of 6.5%, 8-year bonds dated June 30, 20X5, with semiannual interest payments on December 31 and June 30. The bonds were issued on June 30, 20X5, for $1,033,750, Rubotics Corporation's year-end is December 31. a) Were the bonds issued at a premium, a discount: or at par? b) Was the mar


If the liabilities of a company is 1/3 of the total assets- what is the amount of the liabilities (the owner's equity is $300,000)

Effect on accounting equation

For each of the following items, give an example of a business transaction that has the described effect on the accounting equation: Increase an asset and increase a liability. Increase one asset and decrease another asset. Decrease an asset and decrease owner's equity. Decrease an asset and decrease a liability. Incr

Contingencies: Estimating the Liability to Report for Contingencies.

13. (Contingencies) Presented below are three independent situations. Answer the question at the end of each situation. 1. During 2004, Salt-n-Pepa Inc. became involved in a tax dispute with the IRS. Salt-n-Pepa's attorneys have indicated that they believe it is probable that Salt-n-Pepa will lose this dispute. They also bel


1. Chris Rock believes a current liability is a debt that can be expected to be paid in one year. Is Chris correct? Explain. 11. Describe the two major obligations incurred by a company when bonds are issued. 25. You are a newly hired accountant with Schindlebeck Company. On your first day, the controller asks you to iden

A. Determine the total liabilities as of Feb 2nd 2003 and Feb 3,2002 b. Determine the ratio of liablilities to stockholders equity for 2003 and 2002. Round in two decimal places. c What conclusions regardomg the margin of protection to the creditors can you draw from (b)

The home depot is the the Worlds largest home improvement retaier and one of the largest retailes inthe US based on net sales volume. The home depot operates over 1,100 home depot stores that sell a wide assortment of building materials and home improvement and lawn and garden products.The home depot also operates over 25 EXpo D

Financial analysis -assets and liabilities

The amounts of the assets and liabilities of Inkjet Supply Co. as of December 31, 19X4, and the revenues and expenses of the company for the year ended on that date follow. The items are listed in alphabetical order. Accounts payable........................................................................$12, 000 Accounts r

Indicate effect of transactions on assets, liabilities, and net income

Prepare one sheet with the column headings as below. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the account name and amount, and indicating whether it is an addition, (+) or a subtraction

Cash Flow to Total Liabilities Ratio

THE PROBLEM: Calculate the Cash Flow to Total Liabilities Ratio and the Return to Net Operating Ratio for Johnson and Johnson (2002) 1) Here are the sites with the financial statements and data: