Homework answers / question archive / Required a

Required a

Accounting

Share With

Required a. What are three categories of contingent liabilities? 1. 2. 3. b. For each item in the preceding list, determine the correct accounting treatment. Prepare any required journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list X Record the warranty expense for event 1. > B Record the fines associated with the violations of environmental laws for event 2. C Record the current year losses for property damage in event 3 Credit Note : = journal entry has been entered Record entry Clear entry View general journal

Sheridan Ltd. reported the following for the fiscal year 2021: SHERIDAN LTD. Income Statement Year Ended September 30, 2021 Sales $566,000 Cost of goods sold 321,000 Gross profit 245,000 Operating expenses $ 92,000 Depreciation expense 17,000 Gain on sale of land (27,000 ) 82,000 Profit before income tax 163,000 Income tax expense 40,750 Profit $122,250 Additional information:

1. Accounts receivable decreased by $14,600 during the year. 2. Inventory increased by $6,100 during the year. 3. Prepaid expenses decreased by $4,100 during the year. 4. Accounts payable to suppliers increased by $9,600 during the year. 5. Accrued expenses payable increased by $3,600 during the year. 6. Income tax payable decreased by $5,400 during the year.

Prepare the operating activities section of the cash flow statement using the direct method