Check my w During December, Far West Services makes a $1,200 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.5% Record sales and sales tax payable. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction lit Journal entry worksheet Submit Check my work Required information (The following information applies to the questions displayed below) A company is the number one online music retailer through its iTunes music store. The company sells iTunes gift cards in $15, $25, and $50 increments. Assume the company sells $20.1 million in iTunes gift cards in November, and customers redeem $13.1 million of the gift cards in December 3. What is the ending balance in the Deferred Revenue account? (Enter your answer in dollars, not in millions. (.e. 5.5 should be entered as 5,500,000).) Ending balance CD Required information The following information applies to the questions displayed below.) Lindy Appliance begins operations in 2021 and offers a one-year warranty on all products sold. Total appliance sales in 2021 are $1,600,000, and Lindy estimates future warranty costs in 2022 to be 2% of current sales. Actual warranty costs in 2022 are $25,000. Also in 2022, Lindy has additional sales of $2,400,000 and revises its estimate of warranty costs associated with sales in 2022 to be 15%. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 2 3 Record the contingent liability for warranties for the year ending December 31, 2021 Required information {The following information applies to the questions displayed below.) Lindy Appliance begins operations in 2021 and offers a one-year warranty on all products sold. Total appliance sales in 2021 are $1,600,000, and Lindy estimates future warranty costs in 2022 to be 2% of current sales. Actual warranty costs in 2022 are $25,000. Also in 2022, Lindy has additional sales of $2,400,000 and revises its estimate of warranty costs associated with sales in 2022 to be 15% 4. What is the balance in Warranty Liability at the end of 2021 and 20227 2021 2022 Warranty Liability Chec Required information {The following information applies to the questions displayed below.) Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.8 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 7% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity Each firm has a December 31 year-end. Required: 1. Prepare the journal entries on October 1, 2021, to record the issuance of the note. (If no entry is required for a transaction/event select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.) View transaction list Journal entry worksheet of 12 Check Required information The following information applies to the questions displayed below.) Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.8 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 7% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end. 2. Record the adjustments on December 31, 2021, for (a) Precision Castparts and (b) Midwest Bank. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.) View transaction ist Journal entry worksheet Required information The following information applies to the questions displayed below.] Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.8 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 7% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end. 3. Prepare the journal entries on September 30, 2022, to record payment of the notes payable at maturity. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.) View transaction list Journal entry worksheet Check my work Emily Turnbull, president of Aerobic Equipment Corporation, is concerned about her employees' well-being. The company offers its employees free medical, dental, and life insurance coverage. It also matches employee contributions to a voluntary retirement plan up to 5% of their salaries. Assume that no employee's cumulative wages exceed the relevant wage bases. Payroli information for the biweekly payroll period ending January 24 is listed below. Wages and salaries Employee contribution to voluntary retirement plan Medical insurance premiums paid by employer Dental insurance premiums paid by employer Life insurance premiums paid by employer Federal and state income tax withheld FICA tax rate Federal and state unemployment tax rate $1,750,000 87,500 35,000 12,250 6,125 376,250 7.65% 6.20% Required: 1., 2. & 3. Record the necessary journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction ist Journal entry worksheet Check my work Eugene Wright is CFO of Caribbean Cruise Lines. The company offers luxury cruises. It's near year-end, and Eugene is feeling kind of queasy. The economy is in a recession, and demand for luxury cruises is way down. Eugene doesn't want the company's current ratio to fall below the 1.0 minimum stated in its debt covenant with First Federal Bank. If the company reports a current ratio below 10 at year-end, First Federal may require immediate repayment of its $8 million loan, which is not due for another two years. At the end of the year, Caribbean Cruise Lines reports current assets of $101 million and current liabilities of $10 million. These amounts include advanced payments of $1 million from customers in December for cruises to be provided the following summer Instead of treating the $1 million as deferred revenue, Eugene decided to count the cash received as revenue. He reasoned that cash has already been collected and the company has a long history of providing cruises, so customers will be provided their cruise as scheduled and the company will have cash to pay the bank in the future. Required: 1. Understand the reporting effect How does Eugene's decision affect the reported amount of current assets and current abilities at the end of December? DK sces Eugene's decision will have no effect on current assets but will understate current liabilities, O Eugene's decision will understate current assets but will have no effect on current liabilities. Eugene's decision will overstate current assets but will have no effect on current liabilities. 2. Specity the options: Calculate the current ratio assuming the $1 million is treated as (m) service revenue or (b) deferred revenue. (Round your answers to 2 decimal places.) Service Revenue Deferred Revenue C Prev NAXI 12 . Service Revenue Deferred Revenue Current Ratio nts eBook Print ferences 3. Identify the impact: Does Eugene's decision have an effect on First Federal Bank? O Yes O No 4. Make a decision: Should Eugene record the $1 million as service revenue? O Yes