it,s 10 employees and the income before bones and tax shold be =$1372476

ACC 302 - Current Liabilities Case -40 points Sinyth Corpo Additional information. No adjustments have been made for any of the additional information. No reversing entries were made af 1/1/1. (Hints!ll Do pet change "Cash"). Financial statemeats are not issuod until March of 2 ) a. Smyth has a policy that allows employees 10 vacation days annually. The vacation days vest after an employee has been employed for six momths. Smyth has a workforce of 25 employees each of whom has been with the company for at least three years. The average weekly salury is $1,000 (assume a five day work week). During the year employees took vacation hours totaling 115 days. The bookkeeper debited Vacation Expense when the employees were paid for the vacation days taken. (Ignote payroll taxes) bales include state sales tax at 5%. The bookkeeper debits Sales Tax Expense when sales taxes are paid to the state. At year end, sales tax of $21,000 is due to the state. Sales Tax Payable at 1 I /11 was zero. the state. At year end, sales tax of $21,000 is due to the statc. Sales Tax raysbie an c. Warranty costs are estimated at 1,6% of the selling price. Actual warranty conts incurred. d. The corporate tax rate is 40%. e. The company president receives a bonus based upon 10% of incotne before bonis and tax. f. $1,000,000 of the bonds mature 6/30/2. The minutes of the last board meeting state that the company plans to refinance the bonds on a long-ierm basis when they mature. You have deternined that the company has no commitments from any lender to take care of these bonds: g. $1,000,000 of the bonds matured 1/31/2. They were extinguisbed by issuing common stock. (Today's date is 2/1/2 ). h. Smyth issued a 2 year, 590,000 , noninterest bearing note on 12/31/x1 for the purchase of a machine. The. market rate of interest is 10%. No entry has been made for this purchase. i. Cash dividends of $15,000 were declared on 12/15/x1 to be paid to stockholders of record on 1/15/2 we be paid 1/31/2. j. The company is suing a competitor for patent infringement. The attomeys believe that Smyth will win the law suit. The settlement may be for as much as $90,000. The attomeys believe Smyth will probably receive $45,000. k. The company is being sued by a customer who was hurt while visiting the corporate office. The antomeys believe that Smith may lose as much as $100,000, but that the customer will probably settle for $35,000. Required: Prepare a balance sheet and income statement for Smyth Company. Show calculations, as well as adjusting entries, related to the above additional information