Accounts Essay

1231 WordsSep 17, 20125 Pages
E13-1 (Balance Sheet Classification of Various Liabilities) How would each of the following items be reported on the balance sheet? (a) Accrued vacation pay. –Compensated absences under current liabilities (b) Estimated taxes payable. –current liabilities (c) Service warranties on appliance sales. –loss contingencies (d) Bank overdraft. –accounts payable under current liabilities (e) Personal injury claim pending. –compensated absence under current liability (f) Unpaid bonus to officers.-salaries and wages payable under current liability (g) Deposit received from customer to guarantee performance of a contract.-customer advances and deposits under current liabilities (h) Sales taxes payable. –current liabilities (i) Gift certificates sold to customers but not yet redeemed. –unearned revenue under current liabilities (j) Premium offers outstanding. –unearned revenue under current liabilities (k) Discount on notes payable. -deducted from notes payable under current liabilities (l) Employee payroll deductions unremitted. –current liability (m) Current maturities of long-term debts to be paid from current assets. –current liability (n) Cash dividends declared but unpaid. –dividends payable under current liability (o) Dividends in arrears on preferred stock. –to be disclosed in a note or parenthetically in the capital stock section (p) Loans from officers.-accounts payable under current liability E13-2 (Accounts and Notes Payable) The following are selected 2012 transactions of Darby Corporation. Sept. 1 Purchased inventory from Orion Company on account for $50,000. Darby records purchases gross and uses a periodic inventory system. Oct. 1 Issued a $50,000, 12-month, 8% note to Orion in payment of account. Oct. 1 Borrowed $75,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $81,000 note. Instructions (a) Prepare journal

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