question 1

On November 1, 2021, Quantum Technology, a geothermal energy supplier, borrowed $29 million cash to fund a geological survey. The loan was made by Nevada BancCorp under a noncommitted short-term line of credit arrangement. Quantum issued a nine-month, 9% promissory note. Interest was payable at maturity. Quantum's fiscal period is the calendar year.

Required:

1.Prepare the journal entry for the issuance of the note by Quantum Technology.

2. & 3.Prepare the appropriate adjusting entry for the note by Quantum on December 31, 2021 and journal entry for the payment of the note at maturity.

(For all requirements, if no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

Question2

The following selected transactions relate to liabilities of United Insulation Corporation. United's fiscal year ends on December 31.

2021

Jan.13Negotiated a revolving credit agreement with Parish Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $24.0 million at the bank's prime rate.Feb.1Arranged a three-month bank loan of $7.6 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 13% was payable at maturity.May1Paid the 13% note at maturity.Dec.1Supported by the credit line, issued $10.6 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 12% discount rate.31Recorded any necessary adjusting entry(s).

2022

Sept.1Paid the commercial paper at maturity.

Required:

Prepare the appropriate journal entries through the maturity of each liability.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars.)

a. Record revolving Credit agreement negotiated with parish bank that can be renewed annually upon bank approval. the amount available under line of the credit is $24.0 million at bank's prime rate.

B. Record three month bank loan of $7.6 million with parish bank under the line credit agreement. interest at the prime rate of the 13%was payable at maturity.

c. Record the payment of the 13% note at maturity.

D. Record the issuance of 10.6 million of commercial. paper on a nine month note, supported by the credit line. interest was discount ed at issuance at 12% discount rate.

E. record necessary adjusting entry to accure interest on December 31.

F. Record intrest on comercia pepper in 2022.

G. Record the repayment of commercial pepper at maturity.

question 3Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container's cost. They receive a refund when the container is returned. During 2021, deposits collected on containers shipped were $856,000.

Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2021, represented deposits of $587,000. In 2021, $811,000 was refunded and deposits forfeited were $41,000.

Required:

1.Prepare the appropriate journal entries for the deposits received,returned, and forfeited during 2021.

2.Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet.

1. Record the deposit collected
2. Record the containers returned
3. record deposits forfeited- record revenue
4. recors deposits forfeited- adjust inventory

question 4Cupola Awning Corporation introduced a new line of commercial awnings in 2021 that carry a two-year warranty against manufacturer's defects. Based on their experience with previous product introductions, warranty costs are expected to approximate 2% of sales. Sales and actual warranty expenditures for the first year of selling the product were:

SalesActual Warranty

Expenditures$5,730,000$53,750

Required:

1.Does this situation represent a loss contingency?

2.Prepare journal entries that summarize sales of the awnings (assume all credit sales) and any aspects of the warranty that should be recorded during 2021.

3.What amount should Cupola report as a liability at December 31, 2021?