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On January 1, 2024, the beginning balance in the Warranties Liability account was $75,000. Cash sales for the year totaled $300,000 and credit sales totaled $900,000.  The company estimates warranty costs at 6% of sales. During the year, $65,000 was paid to settle warranty claims. As a result of these transactions, what is the amount of warranties liability that is reported on the company’s 2024 year end balance sheet?   Answer:  $_______

Eagle Corp. is involved in a lawsuit. It is reasonably possible that the jury will find in favor of the plaintiff and Eagle Corp.  will owe ten million dollars. What is the appropriate reporting of this lawsuit and what is the effect on the balance sheet?

Eagle Corp. paid $1,400,000 for a group purchase of land, a building, and equipment.  At the time of the acquisition, the land had a current market value of $400,000, the building had a current market value of $800,000, and the equipment had a current market value of $300,000.  In what amount should the equipment account be debited? (round to the nearest dollar)   Answer:  $_______

Eagle Corp. purchased a patent from Bobcat Inc. on January 1, 2024 for $300,000.  Bobcat Inc. had used the patent for eight years prior to selling it to Eagle Corp.  Assuming Eagle Corp. plans to use the patent for its full legal life, what amount of amortization expense would Eagle Corp. record on its 2024 income statement?

Eagle Corp. has the following information available regarding its inventory: Beginning Inventory $24,400 Gross Purchases $56,200 Freight-In $2,900 Purchase Allowances $1,300 Ending Inventory $46,300  NRV of Ending Inventory $42,000 What is the amount of Cost of Goods Sold reported for the year?

Eagle Corp. had accounts receivable of $140,000 at the beginning of the year and $85,000 at the end of the year and accounts payable at the beginning of the year of $60,000 and $85,000 at the end of the year. Cash sales for the year were $300,000 and sales on account for the year amounted to $450,000. The amount to be reported on the statement of cash flows for cash collections from customers under the direct method is:   Answer:  $_______

Eagle Corp. purchased a patent from Bobcat Inc. on January 1, 2024 for $450,000.  Bobcat Inc. had used the patent for five years prior to selling it to Eagle Corp.  Assuming Eagle Corp. plans to use the patent for its full legal life, what amount of amortization expense would Eagle Corp. record on its 2024 income statement?

Eagle Corp. had accounts receivable of $150,000 at the beginning of the year and $105,000 at the end of the year and accounts payable at the beginning of the year of $70,000 and $85,000 at the end of the year. Cash sales for the year were $400,000 and sales on account for the year amounted to $350,000. The amount to be reported on the statement of cash flows for cash collections from customers under the direct method is:   Answer:  $_______

Eagle Corp. pays its employees every Friday.  The Eagle Corp. employees earn $600,000 each five-day work week.  Assuming December 31, 2023 falls on a Wednesday, which of the following would be included in the journal entry Eagle Corp. would record on December 31, 2023 (to accrue for the salaries)?

Eagle Corp. paid $1,500,000 for a group purchase of land, a building, and equipment.  At the time of the acquisition, the land had a current market value of $500,000, the building had a current market value of $800,000, and the equipment had a current market value of $300,000.  In what amount should the equipment account be debited? (round to the nearest dollar)   Answer:  $_______