1 & 2

Q1: On December 31, 2018, Trey Co has $4,000,000 of short-term notes payable due on February 14, 2019 On January 10, 2016. Trey arranged a line of credit with County Bank which allows Irey to borrow up to $3,000,000 at one percent above the prime rate for three years On February 2, 2019, Trey borrowed $2,400,000 from County Bank and used $1.000.000 additional cash to liquidate $3,400,000 of the short-term notes payable. The amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2018 balance sheet which is issued on March 5, 2019 is ? 02 During 2019, Vanpelt Co introduced a new line of machines that carry a three-year warranty against manufacturer's defects, Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 3% in the year after sale, and 4% in the second year after sale Sales and actual warranty expenditures for the first three-year period were as follows: Sales Actual Warranty Expenditures 2020 $ 600,000 $ 9,000 2021 1.500.000 65,000 2022 2.100.000 135.000 $4,200.000 $209,000 What amount should Vanpelt report as a liability at December 31, 2022? Arial 51200 313