1. What is a current liability?Give 2 examples of current liabilities.

2. What is a long term liability?Give 2 examples of long term liabilities.

II.Journalize each event below:

1. The register tape of Rouxdy Co. indicated sales of $17,250. Assuming a sales tax rate of 6.25%, journalize their sales.

1. On June 1, Addidas Co. sold 15,000 yearly subscriptions of its monthly magazine to customers for $22.00 each. Customers received their first subscription of the magazine July 1.Prepare the journal entries for June 1 and July 1.

1. Madison Co. signed a $21,000, 6%, 6-month note payable at State Bank on August 1. Prepare journal entries for the following dates: August 1, December 31, and the retirement of the note.

1. Prepare the journal entry to record the payment of sales tax owed by Rouxdy Co. (from #4 above).

1. Madison Co. sells 13,000 scanners at a price of $250.00 each. The selling price includes a warranty (1 year) on parts.Madison expects that 4.5% of the scanners will be defective and that warranty repair costs will be $56 per unit.Complete the following:

a. Journalize the sale (assume a 7.75% sales tax rate)7.

b. Estimate, and then journalize the warranty liability.

6. Madison 101 honored scanners (from #5 above).Prepare the journal entry needed.

7. Lucy Company signed a 4 - year, 6.5%, $160,000 note payable. They are required to make annual payments of $40,000 (principal), and interest owed.

1. Journalize the issuance of the note
2. Journalize the first two annual payments