Questions BE 13-2,13-3, 13-5, 13-6, 13-7,and E 13-1,E 13-2, E 136

Persen shouid liabilities for each of the follov ing s b lub one free round-trip ticket, anywhere on its flightsys en must a company recognize an asset retirement i a liability be recorded for risk of loss due to lack of reconded on the books of an ordinary business corpation n, for every 50,000 miles flown on its planes. FlowAcquisition of goods by purchase culd you account for the free ticket award? on credi b) Officers' salaries (c) Special bonus to employees. (d) Dividends arce coverage? Discuss (e) Purchase commitments BRIEF EXERCISES Roley Corporation uses a periodic inventory system and the gross method of accounting for purchase dis 01) Upland Company borrowed $10,000 on November 1 2017, by signing a $40,000 9%, 3 month note Prepare Prepare Takemoto's November 1, 2017, entry; the December 31, 2017, annual adjusting entry; and the February 1, BE13-1 counis On July 1, Roley purchased $60,000 of inventory, terms 2/10, n/30, FOB shipping point. Roley paid freght $1 20.n July 3, Roley retumed damaged goods and received credit of $6,000. On July io, Roley paid for the goods. Prepare al journal entries for Roley Upland s November 1, 2017, entry; the December 31, 2017, annual adjusting entry; and the February 1, 2018, entry BE13-3 101) Takemoto Corporation borrowed $60,000 on November 1, 2017, by signing a $61,350, 3-month, zero-interest- 2018, entry BE13-4 (L01) Sport Pro Magazine sold 12,000 annual subscriptions on August 1, 2017, for $18 each. Prepare Sport Pro's August 1, 2017, ournal entry and the December 31, 2017, annual adjusting entry, assuming the magazines are published and DE 13-5 0.01) Dilns Corporation made credit sales of S30,00 which are subject to 6% sales tax. The corporation also made monthly. which totaled S20 670 including the 6% sales tax (a) Prepare the entry to record Dillons credit sales (b) mpan de to record Dillons cash sales. BE13-6IL01) Lexington Corporation's weekly payroll of $24,000 included FICA taxes withheld of $1,836, federal taxes with $2990, state taxes withheld of $920, and insurance premiums withheld of $250. Prepare the journal entry to record Lexington's payroll. E13-7ILO1) Kasten Inc. provides paid vacations to its employees. At December 31, 2017,30 employees have each eaned 2 weeks time. The employees' average salary is $500 per week. Prepare Kasten's December 31, 2017, adjusting entry BE13-8 (LO1) Mayaguez Corporation provides its officers with bonuses based on net income. For 2017, the bonuses total S350,000 and are paid on February 15, 2018. Prepare Mayaguez's December 31, 2017, adjusting entry and the February 15, 2018, entry BE13-9 (L02) At December 31, 2017, Burr Corporation owes $500,000 on a note payable due February 15, 2018. (a) If Burr by to pay off the note due February 15, how much of the $500,000 should be reported as a current liability at December 31, 2017? (b) If Burr pays off the note on February 15, 2018, and then borrows $1,000,000 on a long-term basis on March 1, how much of the $500,000 should be reported as a current liability at December 31, 2017, the end of the fiscal year? BE13-10 (LO3) Scorcese Inc. is involved in a lawsuit at December 31, 2017. (a) Prepare the December probable that Scorcese will be liable for $900,000 as a result of this suit. (b) Prepare it is not probable that Scorcese will be liable for any payment as a result of this suit. BE13-11 (L03) Buchanan Company recently was sued by a competitor for patent infringement. Attomeys have de that it is probable that Buchanan will lose the case and that a reasonable estimate of damages to be In light of this case, Buchanan is considering establishing a $100,000 self-insurance allowance. What Buchanan record to 31 entry assuming it is the December 31 entry, if any, assuming paid by Buchanan is $300,000. recognize this loss contingency? Calaf's Drillers erects and places into service an off-shore ail platform on January 1, 2018, at a cost of BE13-12 (L03) f is legally required to dismantle and remove the platform at the end of its useful life in 10 years. Calaf estimates