At December 31, 2021, Newman Engineerings liabilities include the following $20 million of 8 bonds were issued for $20 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, 2022 However, the option to call is not expected to be exercised, given prevailing market conditions $24 million of 7 notes are due on May 31, 2022 A debt covenant requires Newman to maintain current assets at least equal to 185 of its current liabilities On December 31, 2021, Newman is in violation of this covenant Newman obtained a waiver from National City Bank until June 2022, 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 2022 $17 million of 10 bonds were issued for $17 million on August 1, 1989 The bonds mature on July 31, 2022 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 answers in millions (i e , 10,000,000 should be entered as 10) ) Cupola Awning Corporation introduced a new line of commercial awnings in 2021 that carry a two year warranty against manufacturers defects Based on their experience with previous product introductions, warranty costs are expected to approximate 4 of sales Sales and actual warranty expenditures for the first year of selling the product were Sales Actual Warranty Expenditures $5,090,000 $52,000 Required 1 Does this situation represent a loss contingency 2 Prepare journal entries that summarize sales of the awnings (assume all credit sales) and any aspects of the warranty that should be recorded during 2021 3 What amount should Cupola report as a liability at December 31, 2021

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At December 31, 2021, Newman Engineerings liabilities include the following: $20 million of 8% bonds were issued for $20 million on May 31, 1999. The

At December 31, 2021, Newman Engineerings liabilities include the following:

$20 million of 8% bonds were issued for $20 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, 2022. However, the option to call is not expected to be exercised, given prevailing market conditions.
$24 million of 7% notes are due on May 31, 2022. A debt covenant requires Newman to maintain current assets at least equal to 185% of its current liabilities. On December 31, 2021, Newman is in violation of this covenant. Newman obtained a waiver from National City Bank until June 2022, 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 2022.
$17 million of 10% bonds were issued for $17 million on August 1, 1989. The bonds mature on July 31, 2022. 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 answers in millions (i.e., 10,000,000 should be entered as 10).)

Cupola Awning Corporation introduced a new line of commercial awnings in 2021 that carry a two-year warranty against manufacturers defects. Based on their experience with previous product introductions, warranty costs are expected to approximate 4% of sales. Sales and actual warranty expenditures for the first year of selling the product were:

Sales	Actual Warranty Expenditures
$5,090,000	$52,000

Required: 1. Does this situation represent a loss contingency? 2. Prepare journal entries that summarize sales of the awnings (assume all credit sales) and any aspects of the warranty that should be recorded during 2021. 3. What amount should Cupola report as a liability at December 31, 2021?