Reference no: EM132647289

Questions -

Q1. Ali Sales Company has the following selected accounts after posting adjusting entries:

Accounts Payable $ 12,000

Notes Payable, 3-month 40,000

Accumulated Depreciation-Equipment 24,000

Notes Payable, 5-year, 6% 50,000

Payroll Tax Expense 3,000

Interest Payable 1,000

Mortgage Payable 100,000

Sales Tax Payable 23,000

Instructions: Prepare the current liability section of Ali Sales Company's balance sheet, assuming $10,000 of the mortgage is payable next year.

Q2. On September 1, Hadel Corporation borrowed $2,400 on a 6 months, 10% note. Prepare the entries to record the issuance of the note, the accrual of interest at year end, and the payment of the note.

Q3. During December 2009, Fashion Vixen Publishing sold 2,000 12-month annual magazine subscriptions at a rate of $20 each. The first issues were mailed in February 2009. Prepare the entries on Fashion Vixen's books to record the sale of the subscriptions and the mailing of the first issues.

Q4. Elma Company had cash sales of $25000 (including taxes) for the month of June. Sales are subject to 10% sales tax. Prepare the entry to record the sale.

Q5. On December 1, B-win Company introduces a new product that includes a one-year warranty on parts. In December, 200 units are sold. Management believes that 2% of the units will be defective and that the average warranty costs will be $30 per unit. Prepare the adjusting entry at December 31 to accrue the estimated warranty cost.