Taft Corp. operates a retail hardware store. All items are sold subject to a 6 % state sales tax, which Taft collects and records as sales revenue. The sales taxes paid by Taft are charged against sales revenue. Taft pays the sales taxes when they are due. Following is a monthly summary appearing in Taft’ s first quarter year 2 sales revenue account:
62. In its financial statements for the quarter ended March 31, year 2, Taft’ s sales revenue and sales taxes payable would be
63. A company has the following liabilities at year-end:
64. What amount should the company include in the current liability section of the balance sheet?
Wall Co. sells a product under a two-year warranty. The estimated cost of warranty repairs is 2 % of net sales. During Wall’ s first two years in business, it made the following sales and incurred the following warranty repair costs:
65. What amount should Wall report as warranty expense for year 2?
66. Milton Co. pledged some of its accounts receivable to Good Neighbor Financing Corporation in return for a loan. Which of the following statements is correct?
67. On March 1, year 1, Williams Corporation issued at 103 plus accrued interest, 100 of its 9 %, $ 1,000 bonds. The bonds are dated January 1, year 1, and mature on January 1, year 11. Interest is payable semiannually on January 1 and July 1. Williams paid bond issue costs of $ 5,000. Based on the information above, Williams would realize net cash receipts from the bond issuance of