Analyzing and Determining the Amount of a Liability

For each of the following situations, indicate the liability amount, if any, which is reported on the balance sheet of Hirst, Inc., at December 31, 2018.

a. Hirst owes $110,000 at year-end 2018 for its inventory purchases.
b. Hirst agreed to purchase a $28,000 drill press in January 2019.
c. During November and December of 2018, Hirst sold products to a firm with a 90-day warranty
against product failure. Estimated 2019 costs of honoring this warranty are $2,200.
d. Hirst provides a profit-sharing bonus for its executives equal to 5% of its reported pretax annual income.
The estimated pretax income for 2018 is $600,000. Bonuses are not paid until January of the following year.

Subject: Financial Accounting