Journalize the companys accrual of interest expense on June 30, 2013, its fiscal year-end.

Journalize the companys payment of the note plus interest on December 31, 2013.

Record the sales, warranty expense, and warranty payments for the company.

Q14. Post to the Estimated warranty payable T-account. At the end of 2012, how much in Estimated warranty payable does the company owe?

Why are these contingent (versus actual) liabilities?

Q16. How can a contingent liability become an actual liability for Farley Motors? What are the limits to the companys product liabilities in the United States?

Compute Traxells gross pay for working 48 hours during the first week of February. Carry amounts to the nearest cent.

Q18. Traxell is single, and her income tax withholding is 10% of total pay. Traxells only payroll deductions are payroll taxes. Compute Traxells net (take-home) pay for the week. Use a 7.65% FICA tax rate, and carry amounts to the near- est cent.

Q19. Compute College of San Bernardinos total expense of employing Gloria Traxell for the 48 hours that she worked during the first week of February. Carry amounts to the nearest cent.

Compute your net pay for November. Use 7.65% FICA tax rate and assume the 2010 FICA wage ceiling of $106,800 applies.

Q21. Journalize salary expense and payment for College of San Bernardino related to the employment of Gloria Traxell.

Journalize benefits expense for College of San Bernardino related to the employ- ment of Gloria Traxell.

Q23. Journalize employer payroll taxes for College of San Bernardino related to the employment of Gloria Traxell.

Journalize the transactions for the company.

Q25. Journalize the transactions for the company.

Journalize the transactions (explanations are not required).

Journalize all four of these transactions for OMally during 2012.

Q28. Journalize Clays warranty expense and warranty payments during 2012. Explanations are not required.

What balance of Estimated warranty payable will Clay report on its balance sheet at December 31, 2012?

Compute Strikers gross pay and net pay for the week. Carry amounts to the nearest cent.

Q31. Journalize Frosty Boys wage expense accrual for Strikers work. An explanation is not required.

Journalize the subsequent payment of wages to Striker.

Journalize Ricardos expenses for employee benefits and for payroll taxes. Explanations are not required

Q34. Journalize the transactions in Denvers general journal. Explanations are not required.

Journalize required transactions, if any, in Garretts general journal. Explanations are not required.

Q36. What is the balance in Estimated warranty payable?

Using the four-column ledger format, open the listed accounts and insert the unadjusted June 30 balances.

Q38. Journalize and post the June 30 adjusting entries to the accounts that you opened. Key adjusting entries by letter.

Prepare the current liabilities section of the balance sheet at June 30, 2012.

Q40. Compute Welchs gross pay, payroll deductions, and net pay for the full year 2012. Round all amounts to the nearest dollar.

Compute Uniteds total 2012 payroll expense for Welch.

Q42. Make the journal entry to record Uniteds expense for Welchs total earnings for the year, his payroll deductions, and net pay. Debit Salary expense and Bonus expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required.

Journalize the transactions in Plymouths general journal. Explanations are not required.

Q44. Journalize required transactions, if any, in Miless general journal. Explanations are not required.

What is the balance in Estimated warranty payable?

Q46. Using the four-column ledger format, open the listed accounts and insert the unadjusted June 30 balances.

Journalize and post the June 30 adjusting entries to the accounts that you opened. Key adjusting entries by letter.

Q48. Prepare the current liabilities section of the balance sheet at June 30, 2012.

Compute Worthingtons gross pay, payroll deductions, and net pay for the full year 2012. Round all amounts to the nearest dollar.

Q50. Compute Crossroads total 2012 payroll expense for Worthington.

Make the journal entry to record Crossroads expense for Worthingtons total earnings for the year, his payroll deductions, and net pay. Debit Salary expense and Bonus expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required.

Q52. Calculate the amount of the employees weekly net pay.

Journalize the entries to accrue the weekly payroll on July 31, 2012, to record the employers payroll taxes associated with the payroll, and to pay the payroll on August 4, 2012.

Q54. Record the $300,000 note payable on March 1, 2013.

Record the entry to accrue interest due on the note at December 31, 2013.

Q56. Record the entry Draper would make to record the payment to the bank on March 1, 2014.

Identify one way that a supervisor can defraud Golden Bear Construction under the pre- sent system.

Q58. Discuss a control feature that the company can use to safeguard against the fraud you identified in Requirement 1.

Why would a company prefer not to disclose its contingent liabilities?

Describe how a bank could be harmed if a company seeking a loan did not disclose its con- tingent liabilities.

Q61. What ethical tightrope must companies walk when they report contingent liabilities?

When a business abuses this issue, how is the independent contractor hurt?

If a business takes an aggressive positionthat is, interprets the law in a very slanted wayis there an ethical issue involved? Who is hurt?

Q64. How could an auditor detect fraud of this sort?

What can a business do to prevent this kind of fraudulent activity?

What should the new accountant do to protect himself?

Q67. Give the breakdown of Amazon s current liabilities at December 31, 2009. Give the January 2010 entry to record the payment of accrued expenses and other current liabilities that Amazon owed at December 31, 2009. (Please assume the entire balance of this item represents accrued expenses.)

Q68. At December 31, 2009, how much did Amazon report for unearned revenue that Amazon had collected in advance? Which account on the balance sheet reports this liability?

Q69. Frequent-flyer programs have grown into significant obligations for airlines. Why should a liability be recorded for those programs? Discuss how you might calculate the amount of this liability. Can you think of other industries that offer incentives that create a similar liability?

Q70. One of S outh w est Ai r lines strategies for success is shortening stops at airport gates between flights. The companys chairman has stated, What [you] produce is lower fares for the customers because you generate more revenue from the same fixed cost in that air- plane. Look up fixed cost in the Glindex of this book. What are some of the fixed costs of an airline? How can better utilization of assets improve a companys profits?