9-2

Co. identity the accounting treatment for each claim as either (a) that is recorded or (b) an item described in notes to its financial statements. estimates that a pending could result in damages of 41, 250,000, it is reasonably possible that the plaintiff will win the case. Huprey estimate damage in a case at $3, 500,000 with a high probability of losing the case. Compute the times interest earned for Park Company, which reports income before interest expense and income taxes of $1, 885,000 and interest expense of $1, 45,000 Interpret times interest earned that is average a times interest earned of 4.00. The payroll records of speedy software show the following information about Marsha Gottschalk. an employee for the weekly pay period ending September 30, 2015 is single and claims one. Compute her Social Security tax (6.2 %) Medicare tax (1.45 %), federal income tax withholding. State income tax (1.0 %), and net pay for the current pay period. (Use the withholding table in Exhibit 9 A.6 and round tax amounts to the nearest cent.) Sera Corporation has made and recorded its quarterly income tax payments. After a final review of taxes for the year, the company identifies an additional $40,000 of income tax expense that should be recorded. A portion of this additional expense, $6,000, is deferred for payment in future years. Record Sera's year end adjusting entry for income tax expense. Answer each of the following related to accounting standards. a. In general, how similar or different are the definitions and characteristics of current liabilities between IFRS and US GAAP? b. Companies reporting under IFRS often reference a set of current liabilities with the financial that would be classified under liabilities IFRS. The following items appear on the balance sheet of a company with a two-month operating cycle. Identify the proper classification of each item as follows: C if it is a current liability. L if it is a long-term liability. or N if it is not a liability. Notes payable (due in 13 to 24 months). Notes payable (due in 6 to 12 months). Notes payable (mature in five years). Current portion of long-term debt. Notes payable (due in 120 days). FUTA taxes payable. Accounts receivable. Sales taxes payable salaries payable. Wages payable Prepare any necessary entries at December 31, 2015. Piper in preparation for year-end financial statements for each of the following separate transactions and events. Piper Company a year-end entry for $10,000 of previously unrecorded cash sales (costing $50000) and its sales taxes at a rate of 4%. The company earned $50,000 of $125,000 previously received in advance and originally recorded as unearned services revenue