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Liabilities Exercises
In a Word document, complete the following assignments:
1. For the following problem, assume the company pays its managers a bonus according to the following terms:
Employer’s Reported Net Income Bonus Amount
Less than $1,000,000 $0
More than $1,000,000 but less than $2,000,000 10% of excess of net income > $1,000,000
More than $2,000,000 $100,000
Assume that managers expect earnings in the current year to be $1,990,000 and earnings next year to be $1,500,000. Explain what incentives there are, if any, for managers to:
2. Journalize the following entries on the books of Winston Co. for November 1, December 1, December 31, and March 1. (Assume a 360-day year is used for interest calculations.)
Liabilities ExercisesIn a Word document, complete the following assignments:1. For the following problem, assume the company pays its managers abonus according to the following terms:Employer’s…
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