Consider the following items.

Instructions: How would each of the preceding items be reported on the statement of financial position?

a. Accrued vacation pay.

b. Income taxes payable.

c. Service-type warranties on appliance sales.

d. Social Security taxes payable.

e. Personal injury claim pending.

f. Unpaid bonus to officers.

g. Deposit received from customer to guarantee performance of a contract.

h. Value-added tax payable.

i. Gift certificates sold to customers but not yet redeemed.

j. Premium offers outstanding.

k. Accounts payable.

l. Employee payroll deductions unremitted.

m. Current maturities of long-term debts to be paid from current assets.

n. Cash dividends declared but unpaid

o. Dividends in arrears on preference shares.

p. Loans to officers.

9. Sultan plc sells 10% bonds having a maturity value of $3,000,000 for $2,783,724. The bonds are dated January 1, 2019, and mature January 1, 2024. Interest is payable annually on January 1. The market rate of interest is 12%.

Instructions: Prepare Sultan plcs journal entries for

(a) The Jan. 1 issuance

(b) The Dec. 31 interest.

(c) Set up a schedule of interest expense and discount amortization.