Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

On June 30, 2009, Sideways Movers had $243,000 in current assets and $211,000 in

ID: 2444074 • Letter: O

Question

On June 30, 2009, Sideways Movers had $243,000 in current assets and $211,000 in current liabilities. On August 1, 2009, Sideways received $50,000 from an issue of promissory notes that will mature in 2012. The notes pay interest on February 1 at an annual rate of 6 percent. Sideways' fiscal year ends on December 31.

Prepare the journal entry on August 1, 2009, to record the issue of notes payable. (Omit the "$" sign in your response.)(info for the top portion) (It didn't let me write it on The very top)



Requirement 5:
(a)
Assume that as of December 31, 2009, Sideways had not yet used the cash obtained from the issue of notes on August 1, 2009. Calculate the current ratio at the end of the fiscal year. (Round your answer to 2 decimal places.)

Current ratio ?




Requirement 6:
(a)
On January 1, 2010, Sideways had accrued product warranty liabilities totaling $9,530. From January 1 to December 31, 2010, the company paid $6,770 under existing warranty agreements and accrued $7,540 for additional warranties arising from sales made in 2010. Prepare the journal entries to record the total payment and accrual made during 2010. (Omit the "$" sign in your response.)

                                                                       Debit          Credit

Warranty payments                                            ?
General Journal Debit Credit                                                  ?  


                                                                        debit          Credit
Warranty accrual                                                 ?
General Journal Debit Credit                                                  ?
          


(b)
What is the balance in Warranty Liability at December 31, 2010? (Omit the "$" sign in your response.)

Warranty Liability $     ?

Recording Notes Payable, Warranties, and Evaluating Impact on Current Ratio LO1, 2, 3, 5

Explanation / Answer

Dr $

Cr $

Dr $ Cr $ Cash 50000      Notes payble 50000 (Being cash received through promisory Notes)
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote