At December 31, 2018, Newman Engineerings liabilities include the following $22 million of 10 bonds were issued for $22 million on May 31, 1999 The bonds mature on May 31, 2029, but bondholders have the option of calling (demanding payment on) the bonds on May 31, 2019 However, the option to call is not expected to be exercised, given prevailing market conditions $26 million of 9 notes are due on May 31, 2022 A debt covenant requires Newman to maintain current assets at least equal to 187 of its current liabilities On December 31, 2018, Newman is in violation of this covenant Newman obtained a waiver from National City Bank until June 2019, having convinced the bank that the companys normal 2 to 1 ratio of current assets to current liabilities will be reestablished during the first half of 2019 $19 million of 12 bonds were issued for $19 million on August 1, 1989 The bonds mature on July 31, 2019 Sufficient cash is expected to be available to retire the bonds at maturity Required Classify the above mentioned debts as current liabilities or noncurrent liabilities Also, provide corresponding value for the same (Enter your answer in millions (i e , 10,000,000 should be entered as 10) ) The following selected transactions relate to contingencies of Classical Tool Makers, Inc , which began operations in July 2018 Classicals fiscal year ends on December 31 Financial statements are issued in April 2019 Classical's products carry a one year warranty against manufacturers defects Based on previous experience, warranty costs are expected to approximate 4 of sales Sales were $2 7 million (all credit) for 2018 Actual warranty expenditures were $43,500 and were recorded as warranty expense when incurred Although no customer accounts have been shown to be uncollectible, Classical estimates that 3 of credit sales will eventually prove uncollectible In December 2018, the state of Tennessee filed suit against Classical, seeking penalties for violations of clean air laws On January 23, 2019, Classical reached a settlement with state authorities to pay $2 2 million in penalties Classical is the plaintiff in a $4 7 million lawsuit filed against a supplier The suit is in final appeal and attorneys advise that it is virtually certain that Classical will win the case and be awarded $3 2 million In November 2018, Classical became aware of a design flaw in an industrial saw that poses a potential electrical hazard A product recall appears unavoidable Such an action would likely cost the company $570,000 Classical offered $25 cash rebates on a new model of jigsaw Customers must mail in a proof of purchase seal from the package plus the cash register receipt to receive the rebate Experience suggests that 70 of the rebates will be claimed Ten thousand and seven hundred of the jigsaws were sold in 2018 Total rebates to customers in 2018 were $112,000 and were recorded as promotional expense when paid Required 1 a Prepare the year end entries for any amounts that should be recorded as a result of each of the above contingencies 1 b Indicate whether a disclosure note is needed for the above transactions

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At December 31, 2018, Newman Engineerings liabilities include the following: $22 million of 10% bonds were issued for $22 million on May 31, 1999. The

At December 31, 2018, Newman Engineerings liabilities include the following:

$22 million of 10% bonds were issued for $22 million on May 31, 1999. The bonds mature on May 31, 2029, but bondholders have the option of calling (demanding payment on) the bonds on May 31, 2019. However, the option to call is not expected to be exercised, given prevailing market conditions.
$26 million of 9% notes are due on May 31, 2022. A debt covenant requires Newman to maintain current assets at least equal to 187% of its current liabilities. On December 31, 2018, Newman is in violation of this covenant. Newman obtained a waiver from National City Bank until June 2019, having convinced the bank that the companys normal 2 to 1 ratio of current assets to current liabilities will be reestablished during the first half of 2019.
$19 million of 12% bonds were issued for $19 million on August 1, 1989. The bonds mature on July 31, 2019. Sufficient cash is expected to be available to retire the bonds at maturity.

Required: Classify the above mentioned debts as current liabilities or noncurrent liabilities. Also, provide corresponding value for the same. (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)

The following selected transactions relate to contingencies of Classical Tool Makers, Inc., which began operations in July 2018. Classicals fiscal year ends on December 31. Financial statements are issued in April 2019.

Classical's products carry a one-year warranty against manufacturers defects. Based on previous experience, warranty costs are expected to approximate 4% of sales. Sales were $2.7 million (all credit) for 2018. Actual warranty expenditures were $43,500 and were recorded as warranty expense when incurred.
Although no customer accounts have been shown to be uncollectible, Classical estimates that 3% of credit sales will eventually prove uncollectible.
In December 2018, the state of Tennessee filed suit against Classical, seeking penalties for violations of clean air laws. On January 23, 2019, Classical reached a settlement with state authorities to pay $2.2 million in penalties.
Classical is the plaintiff in a $4.7 million lawsuit filed against a supplier. The suit is in final appeal and attorneys advise that it is virtually certain that Classical will win the case and be awarded $3.2 million.
In November 2018, Classical became aware of a design flaw in an industrial saw that poses a potential electrical hazard. A product recall appears unavoidable. Such an action would likely cost the company $570,000.
Classical offered $25 cash rebates on a new model of jigsaw. Customers must mail in a proof-of-purchase seal from the package plus the cash register receipt to receive the rebate. Experience suggests that 70% of the rebates will be claimed. Ten thousand and seven hundred of the jigsaws were sold in 2018. Total rebates to customers in 2018 were $112,000 and were recorded as promotional expense when paid.

Required: 1-a Prepare the year-end entries for any amounts that should be recorded as a result of each of the above contingencies. 1-b Indicate whether a disclosure note is needed for the above transactions.