37. In determining whether to accrue employees’ compensation for
future absences, among the conditions that must be met are that the
obligation relates to rights that
38. On September 1, year 1, a company borrowed cash and signed a
1-year interest-bearing note on which both the principal and interest
are payable on September 1, year 2. How will the note payable and
the related interest be classified in the December 31, year 1 balance
sheet?
39. Dell Company sells its products in reusable, expensive
containers. The customer is charged a deposit for each container
delivered and receives a refund for each container returned within two
years after the year of delivery. Dell accounts for the containers not
returned within the time limit as being retired by sale at the deposit
amount. Information for year 3. concerning the containers is as
follows:
40. What amount should Dell report as a liability for returnable
containers at December 31, year 3?
41. On December 31, year 2, Marsh Company entered into a debt
restructuring agreement with Saxe Company, which was experiencing
financial difficulties. Marsh restructured a $100,000 note receivable
as follows:
42. Marsh does not elect the fair value option for recording this note
receivable. In accordance with the agreement, Saxe made payments
to Marsh on December 31, year 3 and year 4. How much interest
income should Marsh report for the year ended December 31, year 4?
43. If the payment of compensation is probable, the amount can be
reasonably estimated, and the obligation relates to rights that vest,
employees’ compensation for future absences should be