face value of coupons redeemed, plus 10 % of coupon value as compensation for handling costs. Blake honors requests for coupon redemption by retailers received up to 3 months after the consumer expiration date. In Blake’ s experience, 60 % of the coupons issued ultimately are redeemed. Information with respect to the two separate series of coupons issued by Blake during year 1 is as follows:
35. What amount should Blake report as a liability for unredeemed coupons at December 31, year 1?
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: