Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 41

Fifteen transactions or events affecting Technology Specialists, Inc., are as follows:
a.ade a year-end adjusting entry to accrue interest on a note payable.
b. liability classified for several years as long-term becomes due within the next 12 months.
c.ecorded the regular biweekly payroll, including payroll taxes, amounts withheld from employees, and the issuance of paychecks.
d.arned an amount previously recorded as unearned revenue.
e.ade arrangements to extend a bank loan due in 60 days for another 18 months.
f.ade a monthly payment on a fully amortizing installment note payable.Assume this note is classified as a current liability.)
g.alled bonds payable due in seven years at a price above the carrying value of the liability in the accounting records.
h.ssued bonds payable at 97 on May 1, 2015.he bonds pay interest May 1 and November 1.
i.ecorded November 1, 2015, interest expense and made semiannual interest payment on bonds referred to in part h.j.ecorded necessary adjusting entry on December 31, 2015, for bonds referred to in part h.k.ssued bonds payable at 102 on July 31, 2015.he bonds pay interest July 31 and January 31.
l.ecorded necessary adjusting entry on December 31, 2015, for bonds referred to in part k.m.ecorded an estimated liability for warranty claims.
n.ntered into a two-year commitment to buy all hard drives from a particular supplier at a price 10 percent below market.
o.eceived notice that a lawsuit has been filed against the company for $7 million.he amount of the company's liability, if any, cannot be reasonably estimated at this time.
Instructions
Indicate the effects of each of these transactions upon the following elements of the Technology Specialists, Inc.'s financial statements.rganize your answer in tabular form, using the column headings shown below.se the following code letters to indicate the effects of each transaction on the accounting element listed in the column headings: I for increase, D for decrease, and NE for no effect.