Reference no: EM131735932

1. In 2013 a company sold 100 a hot air balloon's at $4000 each the balloons carry a five year warranty for defects. It is estimated that repair costs will average 4% of the total selling price. The estimated warranty liability at the beginning of the year was $51,600 and $17,240 in claims was actually incurred during the year to honor their warranty. What was the balance and the ending estimated warranty liability at the end of the year?

2. Long-term assets are $800, current liabilities are $24,800, and long-term liabilities or $600 if the current ratio is 2.93 to 1 then current assets are what?

3. A company has current assets of $273,000 and current liabilities of $17,650. How much inventory could it purchase on account and achieve its minimum desired current ratio of 2 to 1?

4. A company has $516 in cash and $500 in Accounts Receivable and $700 in inventory. If currently liabilities are $724 and the current ratio would be what?

5. A company has $276 in cash and $500 in Accounts Receivable and $700 inventory if current liabilities are $1612 then the quick ratio would be what?

6. A corporation borrowed $84,250 by issuing a 12% six-month note payable, all due at the maturity date. After three months the companies total liability for this loan amounts to what?

7. If a company is sued by former employee for $500,000 the company has a contingent liability. If the company is found guilty it will have a liability. True or false

8. In accounting a contingent liability and the related contingent loss are recorded in the balance sheet only if the contingency is both probable and the amount can be estimated. True or false

9. Even when I contingent liability is a remote then a disclosure is required true or false

10. There are some liabilities such as income tax payable for which the amount must be estimated value to estimate these amounts record them would be a violation of the matching principle true or false PLEASE SHOW WORK!