Problem 7-29A: Current Liabilities<\/p>\n
Student\u2019s Name<\/p>\n
Institution Affiliation<\/p>\n
Course Name and Code<\/p>\n
Professor\u2019s Name<\/p>\n
Date<\/p>\n
Problem 7-29A: Current Liabilities<\/p>\n
1) The Amount of Cash that Ripley Paid for Interest during Year 1<\/p>\n
Interest=Principal * Rate* Term Principal<\/p>\n
=$70,000*0.06*4\/12<\/p>\n
=$1,400<\/p>\n
2) The Amount of Interest Expense Reported on Ripley\u2019s Income Statement for Year 1<\/p>\n
Interest=Principal * Rate* Term Principal<\/p>\n
=20,000*0.06*2\/12<\/p>\n
=$200<\/p>\n
Total Interest =$1,400+$200<\/p>\n
=$1,600<\/p>\n
3) Amount of Warranty Expenses for Year 1<\/p>\n
Estimated Warranty Expense (EWE)= Sales*1%<\/p>\n
EWE=240,000*1%<\/p>\n
=$2,400<\/p>\n
Current Liabilities Section of the Balance Sheet as at December 31, Year 1<\/p>\n
Interest Payable=20,000*0.06*2\/12<\/p>\n
=$200<\/p>\n
Sales Tax Payable=Total Taxable Income* Rate<\/p>\n
$240000 x 7% =$16800<\/p>\n
$210000 x 7% = $14700<\/p>\n
=$16800-$14700<\/p>\n
=$2,100<\/p>\n
Warranty Payable<\/p>\n
EWE= Sales*1%<\/p>\n
=$240,000 x 1%<\/p>\n
= $2,400<\/p>\n
$2,400-$2,100<\/p>\n
=$300<\/p>\n
Notes Payables<\/p>\n
=$70,000-$70,000+$20,000<\/p>\n
=$20,000<\/p>\n
TOTALS ($)<\/p>\n
Interest Payable 200<\/p>\n
Notes Payable 20,000<\/p>\n
Warranty Payable 300<\/p>\n
Tax Payable -527362593062,100<\/p>\n
Total Current Liabilities 22,600<\/p>\n
30057509706129785895146600<\/p>\n
Effect of Transactions on the Balance Sheet at December 31, Year 1<\/p>\n
Balance Sheet Income Statement Statement of Cash Flows<\/p>\n
Transactions Assets= Liabilities + Equity Rev.- Exp. = Net Inc. 1. + + NA NA NA NA +FA<\/p>\n
2. + + + + + +OA<\/p>\n
3. NA + – NA + – NA<\/p>\n
4. – – NA NA NA NA -OA<\/p>\n
5. – – – NA – – -FA, OA<\/p>\n
6. + + NA NA NA NA +FA<\/p>\n
7. – – NA NA NA NA -OA<\/p>\n
8. NA NA NA NA NA NA NA<\/p>\n","protected":false},"excerpt":{"rendered":"
Problem 7-29A: Current Liabilities Student\u2019s Name Institution Affiliation Course Name and Code Professor\u2019s Name Date Problem 7-29A: Current Liabilities 1)<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-42007","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"\n