employee benefits:
105. What total amount should Morgan report as its liability for compensated absences in its December 31, year 1 balance sheet?
106. Bold Company estimates its annual warranty expense at 2 % of annual net sales. The following data are available:
107. After recording the year 2 estimated warranty expense, the warranty liability account would show a December 31, year 2 balance of
108. A 15-year bond was issued in year 1 at a discount. The fair value option was not elected to value financial liabilities. During year 10 a 10-year bond was issued at face amount with the proceeds used to retire the 15-year bond at its face amount. The net effect of the year 10 bond transactions was to increase long-term liabilities by the excess of the 10-year bond’ s face amount over the 15-year bonds.
109. After three profitable years, Dodd Co. decided to offer a bonus to its branch manager, Cone, of 25 % of income over $ 100,000 earned by his branch. For year 1, income for Cone’ s branch was $ 160,000 before income taxes and Cone’ s bonus. Cone’ s bonus is computed on income in excess of $ 100,000 after deducting the bonus, but before deducting taxes. What is Cone’ s bonus for the year year 1?
110. Wyatt Co. has a probable loss that can only be reasonably estimated within a range of outcomes. No single amount within the range is a better estimate than any other amount. The loss accrual should be
111. A company issued 10-year term bonds at a discount in year 1. Bond issue costs were incurred at that time. The company uses the effective interest method to amortize bond issue costs. Reporting the bond issue costs as a deferred charge would result in