At December 31, 2016, Lansing Company's general ledger shows the following balances after posting adjusting entries:
Additional information:
1. $50,000 of the 8% note due December 31, 2021 is due on December 31, 2017.
2. The Estimated Warranty Liability relates to a multiple year product warranty. One-half of the liability will be honored in 2017, and one-half in 2018.
3. The Unearned Service Revenue pertains to a service contract to be performed in 2018.
Required:
Prepare the liability section of Lansing Company's balance sheet at December 31, 2016.

Question

At December 31, 2016, Lansing Company's general ledger shows the following balances after posting adjusting entries:
  Additional information:
1. $50,000 of the 8% note due December 31, 2021 is due on December 31, 2017.
2. The Estimated Warranty Liability relates to a multiple year product warranty. One-half of the liability will be honored in 2017, and one-half in 2018.
3. The Unearned Service Revenue pertains to a service contract to be performed in 2018.
Required:
Prepare the liability section of Lansing Company's balance sheet at December 31, 2016.

Quizplus · Accepted Answer

The Answer of At December 31, 2016, Lansing Company's general ledger shows the following balances after posting adjusting entries:
  Additional information:
1. $50,000 of the 8% note due December 31, 2021 is due on December 31, 2017.
2. The Estimated Warranty Liability relates to a multiple year product warranty. One-half of the liability will be honored in 2017, and one-half in 2018.
3. The Unearned Service Revenue pertains to a service contract to be performed in 2018.
Required:
Prepare the liability section of Lansing Company's balance sheet at December 31, 2016.

At December 31, 2016, Lansing Company's General Ledger Shows the Following