Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i need help on the spots wjth red x's. as they are incorrect. please only help if you are sure as i only have one
i need help on the spots wjth red x's. as they are incorrect. please only help if you are sure as i only have one chance at this assignment.
Problem 9-22A Current liabilities LO 9-1,9-2, 9-3, 9-4 The following selected transactions were taken from the books of Ripley Company for Year 1: 1. On February 1 Yeart, borrowed $51,000 cash from the local bank. The note had a 7 percent interest rate and was due on June 1, Year 1 2. Cash sales for the year amounted to $230,000 plus sales tax at the rate of 6 percent 3. Ripley provides a 90-day warranty on the merchandise sold. The warranty expense is estimated to be 3 percent of sales. 4. Paid the sales tax to the state sales tax agency on $200,000 of the sales 5. Paid the note due on June 1 and the related interest. 6. On November 1, Year 1, borrowed $38,000 cash from the local bank. The note had a 7 percent interest rate and a one-year term to maturity 7. Pald $4,000 in warranty repairs. 8. A customer has filed a lawsuit against Ripley for $90,000 for breach of contract. The company attorney does not believe the suit has merit. Required a. Answer the following questions: 1. What amount of cash did Ripley pay for interest during Year 1? 2. What amount of interest expense is reported on Ripley's income statement for Year 1? 3. What is the amount of warranty expense for Year 1? b. Post the liabilities transactions to T-accounts and prepare the current liabilities section of the balance sheet at December 31, Year 1. c. Show the effect of these transactions on the financial statements using a horizontal statements model like the one shown next. Use + for increase, - for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (OA), Investing activity (IA), or financing activity (FA) or not affected (NA). The first transaction has been recorded as an example. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A3 Required B1 Required B2 T Account Bal Sheet Required What amount of cash did Ripley pay for interest during Year 17 (Round your answer nearest dollar amount.) Cash paid for $ interest 1.488 Required A2 > Answer is not complete. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A3 Required B1 Required B2 T Account Bal Sheet Required C What amount of interest expense is reported on Ripley's income statement for Year 17 (Round your answer nearest dollar amount.) Interest expence $ 1,931 Prey Nayt Answer is not complete. Complete this question by entering your answers in the tabs below. Required Al Required A2 Required A3 Required 31 Required B2 T Account Bal Sheet Required Show the effect of these transactions on the financial statements using a horizontal statements model like the one shown next. Use + for increase, - for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (TA), or financing activity (FA) or not affected (NA). The first transaction has been recorded as an example. Show less Event Liabilities Revenue NA Expense NA 1 - 2 Assets 1 I NA = 9 It 9 - 4 I. . Equity NA NA NA X NA NA X NA NA NA NA NA NA NA NA ol E - - 5. 5. 7. Net Income Cash Flow NA FA NA . OA NA 83 NA NA NA NA x FA NA OTO FA NA OA NA NA NA X NA NA NA NA OOOOOO + - DIE NA - IL - D1- 0 NA . Required 12 Bal Sheet Answer is not complete. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A3 Required B1 Required B2 T Account Bal Sheet Required C Prepare the current liabilities section of the balance sheet at December 31, Year 1. (Round your answers nearest dollar amount.) RIPLEY COMPANY Balance Sheet (partial) As of December 31, Year 1 Current liabilities Interest payable Warranty payable Notes payable 443 2,900 38,000 Total current liabilities 41,343 also please make it easy and neat for me to refer to my graph as i look at yours. thank you
i need required A1 and A2. and then required C fixed. and then maybe maybe required B2 bal sheet added to? because it says answer is incomplete. look at headings to know which is each one.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started