ADMN919-Management Accounting My Subscriptions/ Courses/ADMN919-Management Accou

Question

ADMN919-Management Accounting My Subscriptions/ Courses/ADMN919-Management Accounting/ Module 7/ Module 7 Homework N 3 Analyzing and Determining Liability Amounts For each of the following situations, indicate the liability amount, if any, that is reported on the balance sheet of Bloomington Inc. at December 31. 2016. Next to each situation, enter the liability amount reported on Bloomington's balance sheet, If the amount is not reported as a liability. enter zero as your answer 220,000 a. Bloomington owes $220,000 at year-end 2016 for inventory purchase egreed to purchase a $28,000 drill press in January 2017 to a ,100 bonus for its executive equal to 5% of $800,000. Partially correct

Explanation / Answer

The amount of liability to be reported on the balance sheet of Bloomington Inc.at December 31,2016 Transaction Explanation Liability to be reported a Amount payable towards Inventory Purchases $220,000 b Bloomington Inc.just agreed to purchase a drill press in Jan.2017 and it hasn’t created any liability by purchasing it. $0 c Warranty expense is a contingent liability and will not be booked as a liability till the occurance of event.But the estimated liability is disclosed under notes to account section. $0 d Profit sharing bonus payable to employee is an expense of Year 2016 though it will be payable in 2017.Liability to be booked in 2016 is 5% of $800000 $40,000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.