A business issued a 90 -day, 5% note for $60,000 to a creditor for an accounts payabie. Indicate the effects on net assets and earnings per share (EPS) of cach of the following 1. Issuing the notes payable. 2. Paying the note at maturity, Induding interest. (Assume 360 days in a year.) Protech inc. provides its employees with varying amounts of vacation per year, depending en the length of employment. The estimated amount of the current year's vacation pay is $432,000. Illustrate the effects on the accounts and financial statements of the adjustment required on January 31 , the end of the first month of the current year, to record the accrued vacation pay. If no account or activity is affected, select "No effect" from the dropdown llst and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Bonds Payable Trensactions Beaufort Vaults Corporation produces and sells burial vaults. On July 1, 20Y3, Beaufort Vauts Corporation issued $25,000,000 of 10 year, 8% bonds at par: Interest on the bonds is payable semiannually on December 31 and June 30 . The fiscal year of the company is the calendar yeari Indicate the effects on net assets and EPS of each of the following: 1. Issuing the bonds payable on July 1,20r; 2. Paying interest on December 31,20r3. Protech inc, provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the currerk year's vacation pay is $432,000 Lilustrate the effects on the accounts and financial statements of the adjustment required on January 31 , the end of the fint month of the current yeat, to fecord the acerued vacabion pay, If no account or activity is affected, select "No effect" from the dropdown flst and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Effect of Financing on Earnings Per Share BSF Co., which produces and seils skiing equipment, is financed as follows: Income tax is estimated at 60% of income. Round your answers to the nearest cent. a. Determine the eamings per share of common stock, assuming that the income before bond interest and income tax is $966,000. per share b. Determine the earmings per share of common stock, assuming that the income before bond interest and income tax is $1,196,000. 1. per share c. Determine the eamings per share of common stock, assuming that the income before bond interest and income tax is $1,426,000. 3. per share By the Month tne soid 16,500 annual magazine subscriptions for $61 during December 20Y4. These new subscribers will receive monthly issues, beginning in January 20rs. By the Month Inci issued a $159,000,180-day, $% note payable on December 1, 20Y4. On March 31,20Y5, By the Month Inc. had accounts payable of $30,600 and acerved wages payable of $6,400. Prepare the Current Uabilities section of the balance sheet for By the Month Inc. on March 31, 20Y5. Do not round intermediate calculations and round your final answers to the nearest dollar. (Assume 360 days in a year.) The following information about the payroll for the week ended September 15 was obtained from the records of Simkins Mining Co: Tax rates assumed: FICA tax, 7.5\% of employee annual earnings State unemployment (employer only), 4.2% Federal unemployment (employer only), 0.8\% Indicate the effects on net assets and EPS of each of the following: 1. Recording and paying the payroll. 2. Recording the employer payroll taxes. 3. Paying the employee and employer payroll taxes ProTech Inc. provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation pay is $432,000. Illustrate the effects an the accounts and financial statements of the adjustment required on January 31 , the end of the first month of the current year, to record the accrued vacation pay, If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. A business tssued a 90-day, S\% note for $60,000 to a creditor for an accounts payable. Indicate the effects on net assots and eamings per share (EPS) of each of the following: 1. Issuing the notes payable. 2. Payng the note at maturity, including interest. (Assume 360 dsys in a vear.) Several months ago, Cinnabar Chemical Company experienced a haxardous materials spill at one of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $1,305,000. The company is contesting the fine. In addition, an employee is seeking $454,000 damages related to infuries sustained while cleaning up the spil, Lastly, a homeowner has sued the company for $236,000. The homeowner lives 15 miles from the plant but believes that the incident has reduced the horne's resale value by $236,000. Cinnabar's legal counsel believes that it is probable that the EPA fine will stand. In addicion, counsel indicates that an out-of-court settlement of $227,000 has recently been reached with the employee. The final papers will be signed next week, Counsel believes that the homeowner's case is much weaker and will be decided in favor of Cinnabar, Other litigation related to the spali is possible, but the damage amounts are uncertain. a. Iliustrate the effects of the contingent liabilies associated with the hazardous materials spill on the accounts and financial statements. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. b. If other litigation related to the spal is possible, but the damagh amoums are uncertain, which of the following is the best course for Cinnabar to follow in its reporting? The following information about the payroll for the week ended September 15 was obtained from the records of Simkins Mining Co. Tax rates assumed: FiCA tax, 7,5\% of employee annual earnings State unempioyment (employer only), 4.2\% Federal unemployment (employer only), 0.8% Indicate the effects on net assets and EPS of each of the following: 1. Recording and paying the payroll. 2. Recording the employer payroil twxes. 3. Paying the employee and employer payroll taxes. Accrued Product Warranty A Wrinkle in Time ine. warrants its products for one year, The estimated product warranty is 6,5% of soles. Assume that sales were 5884,000 for March, in Agril, a customer recelved warranty repairs requiring 543,095 of parts. a. Determine the warranty liability at March 31, the end of the first month of the current fiscal year. Round your answer to the nearest dollar. b. What accounts are decreased for the warranty work provided in Apri? Bonds Payable Transactions Beaufort vaults Corporation produces and sells burial vauits, On July, 1, 20r3, Beaufort Vaults Corporation issued $25,000,000 of 10year,8% bonds at par, Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Indicate the effects on net assets and EpS of each of the following: 1. Issuing the bonds payable on July 1, 20r3. 2. Paying interest on December 31, 20 r. 3. Paying the face value of the bonds at maturity
