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Barker Company has the following transactions as of December 31, 2021. Indicate which, if any, should be shown on the balance sheet of Barker Company
Barker Company has the following transactions as of December 31, 2021. Indicate which, if any, should be shown on the balance sheet of Barker Company as of December 31, 2021 as a liability.
- Barker received an invoice for supplies it ordered at the end of December totaling $5,000, but the supplies have not been received as of December 31.
- Barker received an invoice for advertising services provided in December, in the amount of $10,000.
- Barker will receive a $10,000 loan from its bank on January 1, 2022.
- Barker is being sued for $250,000 in a suit claiming wrongful termination of an employee. Barkers management believes that the case is frivolous and without merit.
- Barker is being sued by one of its vendors for $25,000 for breach of contract. Barkers management believes that the vendor will probably prevail.
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