21. A company sells its product at a price of $75 and charges an additional $5 to customers who want an extended warranty. When you sell a product with an extended warranty, the company debits cash for $80 and credits: A

A. Sales for $75 and Warranty expense for $5

b. Sales for $75 and Guarantee Deposit for $5

c. Sales for $75 and Unearned warranty revenue for $5

d. Sales for $75 and Estimated warranty liability for $5

22. Under what conditions is the current portion of long term debt NOT reported as current debt?

A . If it is going to be paid with common shares of the company.

b. If it is going to be paid with non-current assets.

c. If it is going to be paid with the issuance of new non-current debt.

d. All of the above are correct.

23. Which of the following alternatives represents a payroll withholding that the employer must recognize as a debt in its statements?

A . Federal Unemployment Insurance (FUTA).

b. Individual income tax.

c. State Unemployment Insurance (SUTA).

d. Employer contribution to employee health insurance

2 4. Peterson Photoshop sold $1,000 in gift cards in a special promotion on October 15, 2022 and sold $1,500 in gift cards in another special promotion on November 15, 2022. Of the cards sold in October, $100 was redeemed (used by customers) in October, $250 in November, and $300 in December. Of the cards sold in November, $150 was redeemed in November and $350 was redeemed in December. Peterson views the chance that a gift card will be used (redeemed) as remote if it has not been redeemed within two months. Determine the total unearned income that the company will report in the Statement of Financial Position for 12/31/2022.

A. $0.

b. $1,000.

c. $1,350.

d. $1,500.