13) Sawyer Company self-insures its property for fire and storm damage. If the company were to obtain insurance on the property, it would cost them $ 1,500,000 per year. The company estimates that on average it will incur losses of $ 1,200,000 per year. During 2014, $ 525,000 worth of losses were sustained. How much total expense and / or loss should be recognized by Sawyer Company for 2014?
14) Greeson Corp. signed a three-month, zero-interest-bearing note on November 1, 2014 for the purchase of $ 250,000 of inventory. The face value of the note was $ 253,900. Greeson used a " Discount on Note Payable " account to initially record the note. Assuming that the discount will be amortized equally over the 3-month period and that there was no adjusting entry made for November, the adjusting entry made at December 31, 2012 will include a
15) Presented below is information available for Marley Company. |
Current Assets |
Cash |
$ |
4,000 |
Short-term investments |
65,000 |
Accounts receivable |
61,000 |
Inventories |
110,000 |
Prepaid expenses |
30,000 |
Total current assets |
$ |
270,000 |