Which of the following is true about liabilities?

A$.$ Liabilities must be certain

B$.$ Liabilities must sometimes be estimated

C$.$ Liabilities must be for a specific amount

D$.$ Liabilities must always have a definite date for payment

E$.$ Liabilities must involve an outflow of cash

On October $10,$ you passed by Starbucks on your way to school and purchased a $$30$ gift

card for your auntie Suzie. How does Starbucks record this transaction?

Review the Tesla example on Page $4$ of the lecture guide.

Review the Notes Payable $($Example $2)$ on Page $5$ of the lecture guide.

At the end of the first pay period of the year, Sofia earned $$4,900$ of salary. Withholdings

from Sofia's salary include FICA Social Security taxes at the rate of $6\mathrm{.}2\%,$ FICA Medicare

taxes at the rate of $1\mathrm{.}45\%,$$$518$ of federal income taxes, $$178$ of medical insurance

deductions, and $$28$ of life insurance deductions. Compute Sofia's net pay for this first pay

period.

Hitzu Company sold a copier $($that costs $$4,500)$ for $$9,000$ cash with a two$-$year parts

warranty to a customer on August $16$ of Year $1.$ Hitzu expects warranty costs to be $5\%$ of

dollar sales. It records warranty expense with an adjusting entry on December $31.$ On

January $5$ of Year $2,$ the copier requires on$-$site repairs that are completed the same day.

The repairs cost $$136$ for materials taken from the parts inventory. These are the only

repairs required in Year $2$ for this copier.

A$.$ How much warranty expense does the company report for this copier in Year $1?$

B$.$ How much is the estimated warranty liability for this copier as of December $31$ of

Year $1?$

C$.$ How much is the estimated warranty liability for this copier as of December $31$ of

Year $2?$