See attached file for the questions

Problem 2 A company started providing a one-year warranty on one of their products. There were a total of 1,600 of these products sold during 20x5. The company estimates that the cost of warranty repairs will be as follows: Amount Probability $0 60% 35,000 10% 70,000 10% 100,000 12% 200,000 8% Total warranty costs incurred during the year amounted to $14,600 and were charged to cost of goods sold. Required - Prepare the adjusting journal entries required at December 31, 20x5.

Problem 3 In 20x5, a company is planning a major restructuring that will likely take place in 20x6. The total estimated cost of the restructuring is $2,400,000. Details of the restructuring will not be formally announced until after the board of director meeting, which is to be held in January 20x6. Required - Determine whether or not this meets the definition of a restructuring, and if so prepare the December 31, 20x5 journal entry.

Problem 4 On March 15, 20x5, a company issued bonds, dated December 31, 20x4, with the following characteristics: Face Value $3,000,000 Coupon rate 4% Yield to maturity 4.2% Coupon payment dates Jun 30, Dec 31 Maturity Dec 31, 20x19 The total bond proceeds of $2,959,094 were credited to the bond payable account and coupon payments were charged to the Interest Expense account. Required - Show how the total bond proceeds were calculated and prepare the adjusting journal entry at December 31, 20x5. Your adjusting entry should only have two entries: one debit and one credit.

Problem 5 On January 2, 20x5, a company sold a large piece of equipment with a list price of $300,000 (held in inventory to a customer) on the following terms: blended annual payments of interest and principal starting December 31, 20x5 and ending on December 31, 20x8. The interest rate charged by the note is 2%. The company's incremental borrowing rate is 5% and the customer who purchased the equipment's incremental borrowing rate is 9%. The bookkeeper was unsure on how to handle this and credited the December 31, 20x5 payment to Revenue. No entry was made to the Note Receivable account. Required - Prepare the adjusting journal entries required as at December 31, 20x5.

BUSI 2002 - Intermediate Accounting 2 - Fall 2017 Assignment 1 - Liabilities Your assignment submission must be typed up in either Word or Excel and uploaded (one file only) to the assignment dropbox before midnight September 24, 2017. Problem 1 A customer slipped on the sidewalk and broke her leg in November 20x5 and is suing the company for damages in the amount of $2,000,000. Legal counsel is of the opinion that damages will be awarded and estimates the following probability distribution: Amount $300,000 500,000 1,000,000 Probability 45% 35% 20% Required - Prepare the journal entry for the company required by IFRS in the preparation of the December 31, 20x5 financial statements. Problem 2 A company started providing a one-year warranty on one of their products. There were a total of 1,600 of these products sold during 20x5. The company estimates that the cost of warranty repairs will be as follows: Amount $0 35,000 70,000 100,000 200,000 Probability 60% 10% 10% 12% 8% Total warranty costs incurred during the year amounted to $14,600 and were charged to cost of goods sold. Required - Prepare the adjusting journal entries required at December 31, 20x5. 2 Problem 3 In 20x5, a company is planning a major restructuring that will likely take place in 20x6. The total estimated cost of the restructuring is $2,400,000. Details of the restructuring will not be formally announced until after the board of director meeting, which is to be held in January 20x6. Required - Determine whether or not this meets the definition of a restructuring, and if so prepare the December 31, 20x5 journal entry. Problem 4 On March 15, 20x5, a company issued bonds, dated December 31, 20x4, with the following characteristics: Face Value Coupon rate Yield to maturity Coupon payment dates Maturity $3,000,000 4% 4.2% Jun 30, Dec 31 Dec 31, 20x19 The total bond proceeds of $2,959,094 were credited to the bond payable account and coupon payments were charged to the Interest Expense account. Required - Show how the total bond proceeds were calculated and prepare the adjusting journal entry at December 31, 20x5. Your adjusting entry should only have two entries: one debit and one credit. Problem 5 On January 2, 20x5, a company sold a large piece of equipment with a list price of $300,000 (held in inventory to a customer) on the following terms: blended annual payments of interest and principal starting December 31, 20x5 and ending on December 31, 20x8. The interest rate charged by the note is 2%. The company's incremental borrowing rate is 5% and the customer who purchased the equipment's incremental borrowing rate is 9%. The bookkeeper was unsure on how to handle this and credited the December 31, 20x5 payment to Revenue. No entry was made to the Note Receivable account. Required - Prepare the adjusting journal entries required as at December 31, 20x5