Answer each of the following questions related to various short-term liabilities:

a. Fuhgettaboudit Ltd. operates an Italian restaurant and sells gift cards. At October 31, 2020, Fuhgettaboudit had outstanding gift cards totalling $20,000, of which it expects $2,000 will never be redeemed. What should Fuhgettaboudit report on its statement of financial position at October 31, 2020, in relation to the gift cards?

b. Audio Waves Ltd. has five employees who have been extremely busy during the current fiscal year, which ends on December 31, 2020. Each employee is entitled to 2 weeks’ vacation in return for working 50 weeks. Audio Waves has a weekly payroll of $10,000, and as of December 31, 2020, none of the employees has taken vacation leave. How should this liability be reported on the company’s statement of financial position on December 31, 2020?

c. A car-sharing service collects a one-time $500 refundable membership fee. During the current year, the company received $500,000 in membership fees and it refunded $100,000 to members who terminated the service. How would this information be reflected in the year-end statement of financial position?

d. The balance in a company’s Long-Term Loan Payable account on December 31, 2020, is $350,000. The long-term loan amortizes over seven years with equal principal repayments of $50,000, the first of which is due on October 31, 2021. An interest amount of $1,200 will also be due on October 31, 2021. What amounts should be reported under current liabilities on the company’s December 31, 2020, statement of financial position?

e. A television satellite operator launches a loyalty program by which points are granted for using satellite services. The points entitle the customer to a discount on the price to upgrade the satellite receiver or other equipment such as a digital box. Customers who accumulate 1,000 points will receive $250 off the purchase price of any equipment. (In other words, one point has a $0.25 value.) During the first year of the program, customers had accumulated 1.5 million points on total revenue of $7.5 million. The operator expects that 60% of the points granted will be redeemed. Of the points granted in the first year 1,500,000 were redeemed. How would the loyalty program be reflected in the first two years of launch?