Problem 1-7

Accounts Payable 4,000,000

Accrued Expense 1,500,000
Credit balances of customer's accounts 500,000
Estimated expenses 600,000
Total current liabilities 6,600,000

Problem 1-8
Accounts Payable 1,900,000
Deffered tax liability 400,000
Dividends Payable 500,000
Income Tax Payable 900,000
Note Payable 600,000
Total current liabilities 4,300,000

Problem 1-9
14% Note Payable 30,000
8% Note Payable 100,000
Total current liabilities 130,000

Problem 1-10
12% Note Payable 5,000,000

Problem 1-11
Accounts Payable and accrued expense 1,000,000
10% Debentures Payable 500,000
Total current liabilities 1,500,000

Problem 1-12
Note Payable 750,000

Problem 1-13
Note Payable 2,000,000
Refinanced (80% x 1.5M) (1,200,000)
Total current liability 800,000

Problem 1-14
Accounts Payable 750,000
Short term debt 400,000
Notes Payable 100,000
Bank Payable 1,000,000
Total current liabilites 2,250,000

Problem 1-15
Unearned revenue-Jan. 1 600,000
Cash receipts from service sold 980,000
Service contact revenue recognized (860,000)
Unearned revenue-Dec. 1 720,000

Problem 1-17
1.)
240,000 x 1/2 of 40% 120,000

2.)
Total contract sold (1,000 x 60) 600,000
Contract earned in 2021 (240,000 x 1/2) (120,000)
Defined service revenue- Dec. 31, 2021 480,000

3.)
Remaining 1/2 of 1st contract year (240,000 x 1/2) 120,000
First 1/2 of the 2nd contract year (300,000 x 1/2) 180,000
Total service contract revenue earned in 2022 300,000

4.)
Remainig 1/2 of 2nd contract year (360,000 x 1/2) 180,000

Problem 1-18
1.)
2021 sales (40% x 500,000) 200,000
Amount earned in 1/2 in 2021 100,000

2.)
Total contract sold in 2021 500,000
Contract revenue in 2021 (100,000)
Unearned contract revenue- Dec. 31,2021 400,000

3.)
Remaining 1/2 or first contract year-2021 sales (200,000 x 1/2) 100,000
First 1/2 of 2nd year - 2021 sales (300,000 x 1/2) 150,000
First 1/2 of 1st contract year - 2022 sales (240,000 x 1/2) 120,000
Total contract revenue for 2022 370,000

4.)
Total contract sold in 2021 & 2022 1,100,000
Contract revenue in 2021 (100,000)
Contract revenue in 2022 (370,000)
Unearned contract revenue- Dec. 31, 2022 630,000

Problem 1-19
Monthly subscription (7.2M/12) 600,000
Subscription after Sep. 30 cut off are:
October 600,000
November 600,000
December 600,000
Total unearned subscription receive 1,800,000

Problem 1-20
Cash receipts from subscribers 2,100,000
Less: Subscription revenue recognized on December 31, 2021 (1,500,000)
600,000
Add: Deffered subscription revenue-Jan. 1, 2021 1,700,000
Deffered subscription revenue-Dec. 1, 2021 2,300,000

Problem 1-21
1.)
Subscription received in 2021 that will expire in 2023 125,000
Subscription received in 2022 that will expire in 2023 200,000
Subscription received in 2022 that will expire in 2024 140,000
Subscription revenue for 2022 465,000

2.)
Subscription revenue for 2021 (155,000 + 130,000) 285,000

Problem 1-22
Containers held by customers in 2020 430,000
Containers delivered in 2021 780,000
Total 1,210,000
Less: Deposits returned in 2022 from deliveries in:
2020 250,000
2021 286,000 536,000
Liability for container deposits - Dec. 31, 2022 674,000

Problem 1-23
Deposits collected on catainers 700,000
Less: Refunded by customers during current year -410,000
Liability for refundable deposit at year-end 290,000

Problem 1-24
Advances-Jan. 1 1,180,000
Advances received 1,840,000
Total 3,020,000
Advances applied (1,640,000)
Advances canceled (500,000)
Advances- Dec. 31 880,000

Problem 1-25
Initial payments on Sep. 1,2022 990,000
Problem 1-26
Escrow accounts liability- Jan. 1 700,000
Escrow payments received 1,580,000
Interest on escrow funds 50,000
Total 2,330,000
Real estate taxes paid -1,720,000
Service fee -5,000
Escrow funds liability 605,000

Problem 1-29
B=0.10 (1,650,000 - B)
B= 165,000 - .10B
B+0.10B=165,000
1.10B=165,000
B=165,000 / 1.10
B=150,000

Problem 1-30
Income after bonus and tax (300,000/10%) 3,000,000
Income before tax (3,000,000/75%) 4,000,000
Income before bonus and tax (4,000,000 + 300,000) 4,300,000

Problem1- 31
Income after bonus before tax (600,000/125%) 480,000
Bonus (25% x 480,000) 120,000

Problem 1-32
3,200,000 - 1,000,000 2,200,000
Income after bonus before tax (2,200,000 /110%) 2,000,000
Bonus (2,000,000 x 10%) 200,000