E13-16b (financial statement impact of liability transactions)
E13-16B (Financial Statement Impact of Liability Transactions) Presented below is a list of possible transactions. 1. Accrued accumulated vacation pay. 2. Recorded sales of product and related warranties (assume sales warranty approach). 3. Recorded estimated liability for premium claims outstanding. 4. Borrowed $200,000 from the bank by signing a 1-year, $220,000, zero-interest-bearing note. 5. Recognized 3 months’ interest expense on the note from item 4 […]