a. On September 1, 2011, a company borrowed $100,000 from its bank and signed a nine-month note with 8% interest. The principal and interest on the loan are to be paid when the note matures. What is the total amount related to this loan that should be reported under current liabilities on the company's December 31, 2011, balance sheet?
b. The balance in a company's long-term mortgage payable account on December 31, 2011, is $150,000. This is to be repaid at the rate of $25,000 per year for the next six years. How should this liability be reported on the company's balance sheet on December 31, 2011?
c. During the spring and summer of 2011, the Prairie Predators hockey team sold 2,000 season tickets for the fall 2011—winter 2012 hockey season. Each of the season tickets was sold for $500 and covered 20 games, with 8 to be played in the fall and 12 in the winter. What is the effect on the team's financial statements when the season tickets are sold? What amount of liability (if any) related to the season tickets should be reported on the team's December 31, 2011, balance sheet?
d. Bathurst Beverages collects cash deposits on its returnable bottles and other containers. Past experience indicates that virtually all the bottles and containers will be returned and the deposits refunded. During the current year, the company received $150,000 in such deposits and it disbursed $140,000 for bottles and other containers that were returned. How would this information be reflected in the year-end balance sheet for Bathurst Beverages?
e. During the current year, a company sold 10,000 units of a product that was covered by a two-year warranty. Past experience indicates that approximately 3% of the units sold will require warranty repairs, at an average cost of $50 per unit. The actual costs incurred during the year for repairs under the warranty totalled $7,000. What amount of liability (if any) should be reported on the company's balance sheet at the end of the current year?
f. Shortly before its fiscal year end, a company lost a lawsuit and had damages of $200,000 awarded against it. However, it said that it will appeal the decision in the New Year. Its lawyers are confident that the lower court's decision will be reversed. How should this situation be reported in the year-end financial statements? Explain your reasoning.