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For each of the following, indicate the liability, if any, which would be shown on a balance sheet of Snead Company as of December 31,
For each of the following, indicate the liability, if any, which would be shown on a balance sheet of Snead Company as of December 31, 2021.
- Snead 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.
- Snead received an invoice for advertising services received in December, in the amount of $10,000.
- Snead will receive a $10,000 loan from its bank on January 1, 2022.
- Snead is being sued for $250,000 in a suit claiming wrongful termination of an employee. Sneads management believes that the case is frivolous and without merit.
- Snead is being sued by one of its vendors for $25,000 for breach of contract. Sneads management believes that the vendor will probably prevail.
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