‘3-1 (LO 1) Roley SA.uses a periodic inventory system and the gross method of accounting for purchase discounts. On July 1, Roley purchased €60,000 of inventory, terms 2/10, n/30, FOB shipping, point, Roley paid freight costs of €1,200. On July 3, Roley retuned damaged goods and received credit ‘of €6,000.On July 10, Roley paid for the goods, Prepare all necessary joumal entries for Roley. BE13.2 (LO1) Upland Company borrowed $40,000 on November 1, 2021, by signing a $40,000, 9%, ‘g-month note. Prepare Upland's November 1, 2021, entry; the December 31, 2021, annual adjusting entry; and the February 1, 2022, entry. BE13.3 (LO1) Takemoto Ltd, borrowed ¥60,000,000 on November 1, 2021, by signing a ¥61,350,000 3-month, zero-interest-bearing note, Prepare Takemoto’s November 1, 2021, entry; the December 31, +2021, annual adjusting entry; and the February 1, 2022, entry. BEx3.4 (LO) At December 31, 2021, Burr AG owes €500,000 on a note payable due February 15, 2022, (a) If Burr expects to refinance the obligation by issuing a long-term note on February 14 and. using the proceeds to pay off the note due February 15, how much (if any) of the €500,000 should be reported as a current liability at December 31, 2021? (b) If Burr pays off the note on February 15, 2022, and then borrows €1,000,000 on a long-term basis on March 1, how much (if any) of the €500,000 should be reported as a current liability at December 31, 2021, the end of the fiscal year? BE13.5 (LO1) Herzog SE has a long-term debt with a maturity date of November 2, 2023. On October 10, 2021, it breaches a covenant related to this debt and the loan becomes due on demand. Herzog reaches an agreement with the lender on January 5, 2022, to provide a waiver of the breach, The financial statement reporting date is December 31, 2021, and the financial statements are authorized for issue on Match 16, 2022. Explain whether the debt obligation should be classified as current or non-current. BE13.6 (LO) Sport Pro Maguzine sold 12,000 annual subscriptions on August 1, 2022, for €18 each, Prepare Sport Pro's August 1, 2022, journal entry and the December 33, 2022, annual adjusting entry. BE13.7 (LO) Dillons AS made credit sales of €30,000 which are subject to 6% VAT. The company also made cash sales which totaled €20,670 inciiding the 6% VAT. (a) Prepare the entry to record Dillons’ credit sales. (b) Prepare the entry to record Dillons’ cash sales. BE13.8 (LOL) Henning ple sels its products to Len Taylor, a private individual, for €5,000. The sale subject to a VAT of 15%, Prepare the journal entry to record the sale by Henning. BE13.0 (01) Lexington AG's weekly payroll of €24,000 included Social Security taxes withheld of €1,920, income taxes withheld of €2,990, and insurance premiums withheld of €250. Prepare the journal entry to record Lexington’s payroll. RE13.10 (LO 4) Kasten SA provides paid vacations to its employees. At December 31, 2022, 30 employees have each eamed 2 weeks of vacation time. The employees’ average salary is €700 per week. Prepare Kesten’s December 31, 2022, adjusting entty. BE13.11 (LO) Mayaguez Ltd. provides its officers with bonuses based on net income. For 2021, the bonuses total £350,000 and are paid on February 15, 2022. Prepare Mayaguez's December 31, 2021, adjusting entry and the February 15, 2022, entry.BE13.12 (LO 2, 3) Scoreese A. is involved in a lawsuit at December 31, 2022. (a) Prepare the December 31 entry assuming itis probable that Seorcese will be liable for 900,000 as a result of this suit. (b) Prepare the December 31 entry, if any, assuming it is not probable that Seorvese will be liable for any payment as a result of this suit. BE1g.1g (LO, 3) Buchanan Company recentiy was sued by a competitor for patent infringement. Attorneys have determined that it is probable that Buchanan will lose the ease and that a reasonable estimate of damages to be paid by Buchanan is $300,000. In light of this case, Buchanan is ennsidering establishing ¢ $100,000 self-insurance allowance, What entry or entries, if any, should Buchanan record to recognize this provision? BE13-14 (LO-2) Calat’s Drillers ereets and places into service an off-shore oil platform on January 1, 2022, at a cost of £10,000,000. Calaf estimates it will cost £1,000,000 to dismantle and remove the platform at the end of its useful life in 10 years, which itis legally obligated to do. (The fair value at January 1, 2022, of the dismantle and removal eosts is £450,000.) Prepare the entry to record the environmental liability. BE13.15 (LOz) Streep Factory provides a 2-year warranty with one of its products which was first sold in 2022, Streep sold $1,000,000 of products subject to the warranty. Streep expects $125,000 of warranty costs over the next 2 years. In that year, Streep spent $70,000 servicing warranty claims. Prepare Streep’s journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs, BE13.16 (LO-2) Leppard AG sells DVD players. The company also offers its customers a 4-year warranty contract. Early in 2022, Leppard sold 20,000 warranty contracts at €99 each. The company spent €180,000 servicing warranties during 2022, Prepare Leppard's journal entries for (a) the sale of contracts, (b) the cost of servicing the warranties, and (c) the recognition of warranty revenue. Assume the service costs are inventory costs. BEsy.17 (LO.2) Wynn Company offers a set of building blocks to customers who send in g box tops from Wynn cereal, along with 50¢. ‘The block sets cost Wynn $1.10 each to purchase and 60¢ cach to mail to customers. During 2022, Wynn sold 1,200,000 boxes of cereal. The company expects 30% of the box tops to be sent in. During 2022, 120,000 box tops were redeemed. Prepare Wynn's December 31, 2022, adjusting entry. BEAg.18 (LO-2, 3) Cargo Company purchased land from Hazard Company for €20,000,000 on September 13, 2022, On October 31, 2022, it leamed that the site was contaminated. As a result, Cargo sued Hazard for €4,000,000. Cargo’s attomeys believe that their odds of winning the case are 75%. Indicate how Cargo should account for this lawsuit at December 31, 2022. 813.19 (LO-2) Management at Eli ple has decided to close one of its plants. It will continue to ‘operate the plant for approximately one year. It anticipates the following costs will be incurred as a result of this closing: (1) termination compensation costs, (2) marketing costs to rebrand the company ‘image, (3) future losses for keeping the plant open for another year, and (4) lease termination costs related io the closing, Indicate which, ifany, of these costs should not he considered restructuring costs for parposes of establishing a provision, BE13.20 (LO-2) Luckert NV decided to cancel an existing property lease in one of its divisions, as its operations in this area were no longer profitable. Unfortunately, Luckert has a non-cancelable lease and cannot sublease the property. The present value of future lease payments under the lease is €2,000,000. The penalty to break the lease is €1,450,000. Prepare the journal entry to record this, cancelation.