Income Statement: 4 (a). Suppose The Classical Theater Company sold for $230,000 cash a "season's series" of tickets in advance of December 31 for four performances, each to be held in successive months beginning in January. What is the effect on the balance sheet, December 31? Increase Amount Decrease Amount Account(s) Balance Sheet: Income Statement: 4 (b). What is the effect on the balance sheet, January 31? Balance Sheet: Income Statement: Account(s) Increase Amount Decrease Amount Requirement 1. For each item, indicate how the financial statements will be affected. Identify the affected accounts specifically. 3. National Bank received a $4,000 savings deposit on February 1. On June 30, it recognized interest thereon at an annual rate of 3%. On July 1, the depositor closed her account with the bank. (Round your answer to the nearest cent.) Account(s) Increase Amount Decrease Amount Balance Sheet: Income Statement: 4 (a). Suppose The Classical Theater Company sold for $230,000 cash a "season's series" of tickets in advance of December 31 for four performances, each to be held in successive months beginning in January. What is the effect on the balance sheet, December 31? Account(s) Increase Amount Decrease Amount Balance Sheet: Income Statement: 4 (b). What is the effect on the balance sheet, January 31? Account(s) Increase Amount Decrease Amount Requirement 1. For each item, indicate how the financial statements will be affected. Identify the affected accounts specifically. Requirement 1. For each item, indicate how the financial statements will be affected. Identify the affected accounts specifically. (If a statement if not affected by the item, select "Not Affected" in the Accounts column of the first line below that statement label. For each financial statement, select each account only once. Input the gross increase and/or the gross decrease amount in each respective column. Leave any unused cells blank.) 1. Orange Corporation sells electric appliances, including washing machines. On January 1, 2012, Orange had a liability of $200 million for future warranty claims. Suppose that experience in recent years has indicated that warranty costs for washing machines average 2.7% of sales, and sales of washing machines for January 2012 were $900 million. During January Orange paid $21.3 million to service warranties on previously sold washing machines. (Assume all sales are made on credit.) Balance Sheet: Income Statement: Account(s) Increase Amount | Decrease Amount 2. In Iowa customers buying soft drinks pay a 5 deposit on each bottle or can purchased. (Many other states and countries have similar laws.) The bottler/distributor then pays 5 plus a 1.5 handling fee for each returned bottle or can. About 86% of the bottles and cans are redeemed. Suppose PepsiCo sold 1.56 million bottles of soda in August and paid $63,000 for bottles returned. Balance Sheet: Income Statement: Account(s) Increase Amount Decrease Amount 3. National Bank received a $4,000 savings deposit on February 1. On June 30, it recognized interest thereon at an annual rate of 3%. On July 1, the depositor closed her account with the bank. (Round your answer to the nearest cent.) More info - 1. Orange Corporation sells electric appliances, including washing machines. On January 1, 2012, Orange had a liability of $200 million for future warranty claims. Suppose that experience in recent years has indicated that warranty costs for washing machines average 2.7% of sales, and sales of washing machines for January 2012 were $900 million. During January Orange paid $21.3 million to service warranties on previously sold washing machines. 2. In lowa customers buying soft drinks pay a 5 deposit on each bottle on can purchased. (Many other states and countries have similar laws.) The bottler/distributor then pays 5 plus a 1.5 handling fee for each returned bottle or can. About 86% of the bottles and cans are redeemed. Suppose PepsiCo sold 1.56 million bottles of soda in August and paid $63,000 for bottles returned. 3. National Bank received a $4,000 savings deposit on February 1. On June 30, it recognized interest thereon at an annual rate of 3%. On July 1, the depositor closed her account with the bank. 4. Suppose The Classical Theater Company sold for $230,000 cash a "season's series" of tickets in advance of December 31 for four performances, each to be held in successive months beginning in January. (a) What is the effect on the balance sheet, December 31? (b) What is the effect on the balance sheet, January 31? Print Done