Horno Company incurred the following transactions related to liabilities. Evaluate the transactions and prepare journal entries for each activity. Horno Company has a December 31 fiscal year end. Record the required journal entries on the "Worksheet" tab. The dates and memo entries are already included in the journal entries. There are also two summary questions at the end of the journal entries that must be answered. Upload your file in Blackboard when you are finished. If the transaction requires no journal entry, type NO JOURNAL ENTRY in the journal to note that you did not skip the entry completely. This assignment is worth 20 points. There are 29 lines of journal entries. Each line is is worth 0.60 points. Each line has 2 components--an account name in the correct debit or credit column and a dollar amounts. Each input is worth 0.30 points. Each summary question is worth 1.3 points each. \

Jan. 1, 2021 Horno Company issued a 4%, 9-month note payable to a vendor, Cheddar Company, to purchase equipment for $30,000.

Feb. 14, 2021 Horno Company was informed that it is being sued as a result of an accident that occurred in January 2021. The estimated damages are $1,000,000. Horno's attorneys believe the chances are remote that Horno will have to pay any damages.

Apr. 1, 2021 Horno borrowed $10,000 from the bank with a 11-month, 5% note payable.

May 1, 2021 Horno repaired some defective ovens under warranty in the amount of $25,000. The Warranty Liability account at the beginning of the year was $62,000.

Jun. 1, 2021 Horno borrowed $120,000 from the bank for 5 years at 6%. Annual principal payments are $24,000.

Sep. 30, 2021 Paid face value and interest on January 1 note. Dec. 31, 2021 Accrue interest on the June 1 note from the bank.

Dec. 31, 2021 Accrued interest on the April 1 note from the bank.

Dec. 31, 2021 Horno's sales for the year were $6,000,000. Horno estimates that 1% of sales will require warranty work.

Feb. 28, 2022 Paid face value and interest on April 1, 2021 note.

May 31, 2022 Paid principal and interest on June 1, 2021 note payable.

Dec. 31, 2022 Accrue interest on the June 1, 2021 note from the bank.

GENERAL JOURNAL Date Accounts Debits Credits

1/1/2021 Issued $30,000, 9-month note payable to purchase equipment.

2/14/2021 Horno is sued for $1,000,000.

4/1/2021 Borrowed $10,000 from the bank with a 11-month, 5% note payable.

5/1/2021 Purchased and immediately used supplies for cash, $750.

6/1/2021 Borrowed $120,000 from the bank for 5 years at 6%.

9/30/2021 Paid face value and interest on January 1 note.

12/31/2021 Accrued interest on the June 1 note from the bank.

12/31/2021 Accrued interest on the April 1 note from the bank.

12/31/2021 Record estimated warranty costs 2/28/2022 Paid face value and interest on April 1, 2021 note.

5/31/2022 Paid principal and interest on June 1, 2021 note payable.

12/31/2022 Accrued interest on the June 1, 2021 note from the bank.

What is the total of all current liabilities as of December 31, 2021? Assume no other liabilities other than those presented in this problem.

Assume warranties and contingencies are current liabilities. What is the total of all long-term liabilities as of December 31, 2022?