What amount is payable to a state tax board if the original sales price is $$3,000,$ and the tax rate is $3\mathrm{.}5\%?$

What is a contingent liability?

Match each of the following accounts with the appropriate transaction or description.

Feb. $24$

To record interest payment for one month

Apr. $24$

To record short$-$term loan payment, with interest

Consider the following situations and determine $(1)$ which type of liability should be recognized $($specific account$),$ and $(2)$ how much should be recognized in the current period $($year$).$

A$.$ A business sets up a line of credit with a supplier. The company purchases $$10,000$ worth of equipment on credit. Terms of purchase are $\frac{5}{10},\frac{n}{30}.$

B$.$ A customer purchases a watering hose for $$25.$ The sales tax rate is $5\%.$

C$.$ Customers pay in advance for season tickets to a soccer game. There are fourteen customers, each paying $$250$ per season ticket. Each customer purchased two season tickets.

D$.$ A company issues $2,000$ shares of its common stock with a price per share of $$15.$