At December 31, 2021, Newman Engineering's llabilities include the following 1$30 million of 6% bonds were issued for $30 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 prevaling market conditions. 2. $34 million of 5% notes are due on May 31, 2022. A debt covenant requires Newman to maintain current assets at least equal to 195% 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 company's normal 2 to 1 ratio of current assets to current liabilites will be reestablished during the first half of 2022 3. $27 milison of 8% bonds were issued for $27 million on August 1, 1989. The bonds mature on July 31,2022 . Sufficient cash is expected to be avaliable to retire the bonds at moturity. Required: Classify the above mentioned debts as current fiabilities 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).) Required: Classify the above mentioned debts as current liabilities or noncurrent liabilities. Also, provide correspondi (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2021 of a circu flaw in an amplifier that poses a potential fire hazard. An intense investigation indicated that a product recall is virtually certain. estimated to cost the company $8.0 million. The fiscal year ends on December 31. Required: 1. Should this loss contingency be accrued, only disclosed, or neither? 2. What loss, if any, should Sound Audio report in its 2021 income statement? 3. What liablity, if any, should Sound Audio report in its 2021 balance sheet? 4. Prepare any journal entry needed Complete this question by entering your answers in the tabs below. Should this loss contingency be accrued, only disclosed, or neither? What loss and liability, if any, should Sound Audio report in its 2021 income statement and balance sheet respectively? (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Should this loss contingency be accrued, only disclosed, or neither? What loss and liability, if any, should Sound Audio report in its 2021 income statement and balance sheet respectively? (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Journal entry worksheet Record the liability on product recall. Note: Enter debits before credits. Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2021 of a circuit flaw in an amplifier that poses a potential fire hazard. An intense investigation indicated that a product recall is virtually certain, estimated to cost the company $8.0 million. The fiscal year ends on December 31 . Required: 1. Should this loss contingency be accrued, only disclosed, or neither? 2. What loss, if any, should Sound Audio report in its 2021 income statement? 3. What liability, if any, should Sound Audio report in its 2021 balance sheet? 4. Prepare any joumal entry needed. Complete this question by entering your answers in the tabs below. Should this loss contingency be accrued, only disclosed, or neither? What loss and liability, if any, should Sound Audio report in its 2021 income statement and balance sheet respectively? (Enter your answers in milions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Should this loss contingency be accrued, only disclosed, or neither? What loss and liability, if any, should Sound Audio report in its 2021 income statement and balance sheet respectively? (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Journal entry worksheet Note: Enter debits before credits