Valix Finacc vol 2 Problem 1-50

Financial Accounting Volume 2 2008 Valix-Peralta
Chapter 1 Problem 1-50

1.  Only a disclosure is necessary because it is not probable that the company will         be liable, although the amount can be measured reliably.

2.  Retained earnings                                                                         200,000

            Estimated liability for income tax                                                                200,000

3.  Accounts receivable – Sunset                                                    120,000

     Loss on guaranty                                                                              80,000

            Note payable – bank                                                                                    200,000