Please provide corresponding Note Disclosures
Awesome Company borrowed $20,000 on November 1, 2019, by signing a $20,000, 9%, 3-month note from PNC Bank. The funds were used to purchase equipment in January 2020. Prepare Awesome's November 1, 2019, entry and the December 31, 2019, annual adjusting entry Account Titles and Explanation 11/1/2019 Cash Note Payable (PNC Bank) Debit 20,000 Credit S S 20,000 Debit Credit Account Titles and Explanation 12/31/2019 Interest Expense Interest Payable S 300 $ 300 Awesome Company authorized and issued at par 100 five-year term bonds with a par value of $1,000 each, dated January 1, 2019, secured by equipment, and bearing interest at an annual rate of 5 percent payable semiannually on January 1 and July 1. Prepare Awesome's January 1, 2019 issuance, July 1, 2019 interest payment, and the December 31, 2019, adjusting entry. Credit Account Titles and Explanation 1/1/2019 Cash Bonds Payable s Debit 100,000 s $ 100.000 Debit Credit Account Titles and Explanation 7/1/2019 Interest Expense Cash S 7,500 $ 2,500 Debit Credit Account Titles and Explanation 12/31/2019 Interest Expense Interest Payable $ 2,500 S 2,500 Awesome Company sold 15,000 annual subscriptions on August 1, 2019, for $20 each. Prepare Awesome's August 1, 2019, journal entry and the December 31, 2019, annual adjusting entry, assuming the magazines are published and delivered monthly. Credit Account Titles and Explanation 8/1/2019 Cash Unearned Subscription Revenue Debit 300,000 $ S 300,000 Credit Account Titles and Explanation 12/31/2019 Unearned Subscription Revenue Subscription Revenue Debit 125,000 S $ 125,000 Awesorte corripany s eriproyees are entities to paid vacation, personal, and sick days ort, depending on job status, length of service, and other factors. The Company's policy is to recognize the cost of compensated absences and to accrue liability when employees become vested in the benefits At December 31, 2019, 100 employees have each earned 3 week of vacation time. The employees' average salary is $200 per week. Prepare the December 31, 2019, adjusting entry to record the year's compensated absences accrual and expense. There were no other compensated absences benefits earned during the va Credit Account Titles and Explanation 12/31/2019 Wages and Salary Expenses Salary and Wages Payable Debit 60,000 $ S 60,000 Awesome Company is a defendant in a lawsuit at December 31, 2019. Based upon counsel and management's opinion, the outcome of such matters is expected to have a material adverse effect on the financial position of the company. The dispute is expected to be resolved in 2020 and it has been estimated that Awesome will be liable for $750,000 as a result of this suit. Prepare the December 31 entry assuming it is probable that Awesome will be liable for $750,000 as a result of this suit. Other information regarding the suit include; Alleged wrongful injury and/or death from exposure to asbestos fibers in the air Alleged period of exposure - March 10, 2019 to April 15, 2019 Credit Account Titles and Explanation 12/31/2019 Lawsuit Loss Lawsuit Liability S Debit 750,000 $ 750,000 un January 1, 2019, Awesome company aaopcea a employee scOCK-option pian tnat grantea options to key executives to purchase 10,000 shares of the company's $1 par value common stock. The Company believes that such awards better align the interests of its employees with those of its shareholders. The options were granted on January 1, 2019, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $50, and the fair value option-pricing model determines the total compensation expense to be $500,000. Prepare the December 31, 2019, adjusting entry to record the year's compensation Avrance Credit Account Titles and Explanation 12/31/2019 Compensation Expense Paid in Capital Stock Options S Debit 250,000 $ 250,000 Note Disclosures (1) NOTE DISCLOSURE OF SHORT-TERM DEBT (2) NOTE DISCLOSURE OF BONDS NOTE DISCLOSURE OF (3) UNEARNED SUBSCRIPTION REVENUE NOTE DISCLOSURE OF (4) COMPENSATED ABSENCES POLICY (5) NOTE DISCLOSURE OF ACCRUAL FOR LOSS CONTINGENCY THROUGH LITIGATION (6) NOTE DISCLOSURE OF STOCK OPTION PLAN
