Listed below are selected items from the financial statements of a company for the year ended December 31, Year 1.

Salaries Payable	63,000
Accounts payable	35,000
Current Maturity of Long-Term Debt	25,000
Bonds payable, due December 31, Year 20	2,200,000
Premium on Bonds Payable	14,000
Estimated Warranty Liability	10,000
Note Payable, due Dec. 31, Year 4	75,000
Unearned Revenue	25,000
Note Payable, due June 1, Year 2	8,000
Discount on Note Payable due June 1, Year 2	500

1. Determine the Total Current Liabilities to be on a classified balance sheet at December 31, Year 1.
2. Determine the Total Long-Term Liabilities to be reported on a classified balance sheet at December 31, Year 1.

A company estimates the cost of products warranties to be 3% of sales. The beginning balance in Estimated Warranty Liability account is $15,000. Sales for the period was $795,000. During the period, $32,600 was actually paid for warranty related costs. What is the ending balance in the Warranty Liability account?

1. $6,250
2. $23,850
3. $23,750
4. $17,600
5. $38,850

A company provides a warranty on its products that it sells to customers. The warranty liability account had $1,200 balance on April 1. The company had sales of $67,000 in April and estimated warranty repairs at 3% of sales. During the month, the company actually paid out $2,400 for warranty repairs.

Determine the April 30 balance in the estimated warranty liability account.

If Elonu Corporation issued $1,000,000 of 10-year, 9% bonds payable on January 1 at 95, market interest rates were

1. less than 9%
2. greater than 9%
3. equal to 9%
4. not enough information to determine

A Corporation issued $450,000 face value, 4% 10-year bonds on January 1, Year 1 for $383,063. This price resulted in an effective interest rate of 6% on the bonds. Interest is payable semi-annually on June 30 and December 31.

1. Prepare the journal entry to record the first payment of interest on June 30, Year 1.
2. Determine carrying value on December 31, Year 1, after the interest payments has been made

On January 1, a company retired $800,000 face value bonds at a call price of 103. The bonds were originally issued for $848,000. On the retirement date the bonds had an unamortized premium of $28,352. The entry to retire the debt would include a

1. debit to bonds payable for $828,352
2. credit to cash for $853,203
3. credit to gain for $4,352
4. credit to premium for $28,352
5. debit to loss for $52,203