35) What are definitely determinable liabilities and estimated liabilities?
36) Identify each of the items below as a(n):
? definitely determinable liability
? estimated liability
a. amount of warranty obligations
b. amount owed on outstanding loans
c. amount owed to employees for work performed
d. amount owed to suppliers for inventory purchases
e. amount owed for employee payroll taxes
37) Indicate with an “X” whether each description results in the reporting of a current liability, long-term liability, or neither on the company’s Balance Sheet. Assume a December 31, 2011 yearend.
|
|
Current
|
Long-term
|
Neither
|
1.
|
Amount owed to employees for work performed in the last week of December 2011.
|
|
|
|
2.
|
Amount of loan payment due in 2012.
|
|
|
|
3.
|
The estimated amount owed for utilities; the exact amount will not be known until January 2012 when the bill is received.
|
|
|
|
4.
|
A three-year note payable due in January 2014.
|
|
|
|
38) Indicate with an “X” whether each description results in the reporting of a definitely determinable liability, an estimated liability or neither on the company’s Balance Sheet. Assume a December 31, 2011 yearend.
|
|
Definitely determinable
|
Estimated
|
Neither
|
1.
|
Amount owed to employees for work performed in the last week of December 2011.
|
|
|
|
2.
|
Amount of loan payment due in 2012.
|
|
|
|
3.
|
The estimated amount owed for utilities; the exact amount will not be known until January 2012 when the bill is received.
|
|
|
|
4.
|
A three-year note payable due in January 2014.
|
|
|
|