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Your audit staff for the audit of Jin Corporation turned over to you his working papers containing information on the company's liabilities. You noted the

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Your audit staff for the audit of Jin Corporation turned over to you his working papers containing information on the company's liabilities. You noted the following: Accounts Payable I] I] I] I] Bonds Payable I] The General Ledger balance is 5,000,000. The balance is the net debit balance in the suppliers account amounting to 2oo,ooo. Unrecorded vouchers include the following: o X Company for soo,ooo. The merchandise was shipped December 31, 202D, FDE shipping point. The goods were received on January 3, 2o21. o T Company for ddled. The merchandise was shipped on December 28, soso, FDE Destination. The goods were received on January 4, am. The Company, as consignee, held goods worth so,ooo. These goods were not included in the physical inventory on December 31, 2020 but were included in the Accounts Payable. Jin issued 2,000 at its 5year 1,000 face 1i.-'alue1 1% bonds on January 1, 2018. These bonds were sold for 2,1 55,300 a price that yields 9%. The bonds were dated January 1, sets and pay interest annually every December 31. {in July 1, 2o2ti, mm of the bonds were retired, the company paying 1 ,1oo,ooo inclusive of accrued interest. This amount was charged by the company to the Bonds Payable account. On December 31, men, the company charged Interest expense for the amount of interest paid. No entry was made by the company during 2o2o for the amortization oi the bond. Other Obligations [I In October 202b, an employee was injured on the parldng lot in an accident partially the result of his own negligence. The employee has sued for sobbdb. The legal counsel belieyes it is probable that the outcome of the action Will be unfavorable and that the sedjement would cost the corporation from ZDD to SHRED, Wilt": 2413,0DD the most probable amount within this range. Jin sells goods with a warranty under which customers are covered for the cost of any defects that become apparent within the rst year alter the purchase. If minor defects were detected in all products sold, repair cost of ZDDUDD 1in'iI'ould result. It major defects were detected in all products sold. repair cost of EDD would result. The enterprise's past expen'ence and future expectations indicate that 65% of the goods sold have no defects, 25% of the sold have minor defects and 10% of the goods sold have major detects. On September so, ems, Jin aoquired special equipment trorn Doodle Company by paying 2,ol]o.ooo down and signing a note with a face 1i-'alue 4,obd.bob due September so, 2o21. The note is non interest bearing. Market rate of interest for similar notes at the date of its issuance was 10%. [Round present value factor to ve decimal places}

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