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Portland News Corp.sold 9,891 annual subscriptions to its new magazine on November 1, 2020 for $70 each. Monthly delivery of the magazine began with the
Portland News Corp.sold 9,891 annual subscriptions to its new magazine on November 1, 2020 for $70 each. Monthly delivery of the magazine began with the December 2020 issue of the magazine. In other words, at December 31, 2020, one issue of the magazine had been delivered to subscribers. How much unearned revenue should Portland News Corp. report on its December 31, 2020 balance sheet? Please round your answer to the nearest dollar. HiArch Products, Inc. is the subject of a class action lawsuit involving one of its products sold in retail stores over the past five years. HiArch's attortney has stated that there is a 90% probability that HiArch will lose the case. The attorney has estimated damages in the range of $10,000,000 to $20,000,000 with no amount in that range being more likely than any other. What journal entry should HiArch make as a result of the litigation? Debit Litigation Expense $18,000,000; Credit Litigation Liability $18,000,000 Debit Litigation Expense $10,000,000; Credit Litigation Liability $10,000,000 Debit Litigation Expense $9,000,000; Credit Litigation Liability $9,000,000 Debit Litigation Expense $15,000,000; Credit Litigation Liability $15,000,000 Hamilton Corp. sold a new model of laser printer in 2020 and 2021 to customers along with a two-year warranty guaranteeing the product against operational defects. Hamilton estimates warranty costs based on its experience and industry experience. For the laser printers sold in 2020 and 2021, Hamilton estimates warranty costs will total 1% of sales within the first 12 months following the sale and an additional 3% of sales in the second 12 months following the sale. Here are actual sales and warranty expenditures in the years ended December 31, 2020 and 2021: Sales Actual Warranty Expenditures 2020 $500,000 $3,450 2021 2,250,000 31,400 Total for the two years $2,750,000 $34,850 The customers do not pay extra for the warranties when they purchase the laser printers. What amount should Hamilton report as its total liability for warranties on its balance sheet at December 31, 2021? $47,650 $90,000 $67,500 $75,150
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