Determine the appropriate way to report the following:

1. Show the recording for additional accrued interest for five months on the $30,000, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31.

2. the likelihood of a payment occurring is reasonably possible and the estimated is 12k.

3. the likelihood of a payment occurring is remote, while the estimated potential is 12k,

Explain your reasoning. What are contingent liabilities? What two criteria determines whether or not to report a contingent liability? Is a contingent liability more likely to be reported under IFRS as oppose to U.S. GAAP? Why? Explain!

AP8-1 At the end of 2022, the following information is available for Great Adventures. Additional interest for five months needs to be accrued on the $30,000, 6% loan obtained on Page 436 August 1, 2021. Recall that annual interest is paid each July 31. Assume that $10,000 of the $30,000 loan discussed above is due next year. . By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $25,000 during the year and recorded those as Deferred Revenue. Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $12,000. For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year, the company estimates future warranty costs to be $4,000