QUESTION 6 A company reported 212000 of accounts payable and

QUESTION 6 A company reported $212,000 of accounts payable and S36,000 of unearned revenue on its Oct. 31, 2017 balance sheet. During November, the following transactions occurre Signed a 9-month 5% note for $100,000 Paid suppliers $130,000 of what was owed on account A neighboring firm filed a lawsuit against the company seeking S80,000 in damages for alleged pollution of a local water source. The case will not go to trial until June, 2018, and the company attorney feels the suit doesn\'t have merit, but it\'s reasonably possible that the company will have to pay the plaintiff. Accrued salaries and benefits earned by employees during the last week of the month and payable on Dec. 2 were S15,000. It was determined that $13,500 of unearned revenue had been earned by the end of the month. ov. Nov. 15 Nov. 30 Nov. 30 Determine total current liabiltes on Nov. 30, 2017 O A. s299,917 O B. s220,333 O C. s219,917 O D. $219,500 O E. s299,500 QUESTION 7 A company recorded net sales of $550,000 in 2017 for products carrying a 2-year warranty The company estimates that repair costs for the product will average 5% ofthe selling price. The estimated warranty liability at the beginning of 2017 was $4,100 and S28,300 in warranty work was performed during the year. What was the ending balance in the estimated warranty liability account? O A $4,900 O B. $3,300

Solution

6.C.$219,917.

the following is the calculation:

note:law suit is only reasonably possible, so it shall be mentioned as a foot note to balance sheet, but need not be included in total liabilities.

q7:

B.$3,300.

accounts payable	$212,000
unearned revenue	36,000
notes payable	100,000
interest on notes payable (100,000*5%*1/12)	417
paid suppliers	(130,000)
accrued salaries	15,000
less:unearned revenue	(13,500)
total current liabilities	219,917