Chapter: LIABILITIES Liabilities Classification End of financial year 31/12 / x1, Accounting Department of ABC Company collected some information as follows: Buy material on credit from the company A at cost 400 million, maturity is in June / x2 Pay in Advances to Phu Garage million under contract truck repair service, repair work is expected to finish in January / x2 15 million Borrowing from Company B from January / x1 B forgot to record this transaction into their books Date 15/11 / x1 B went bankrupt Estimate maintenance cost for repairs of machinery of year x2: 100 million Installment purchase over the next years of a fixed assets at cost 150 million Rental expense of Q4 year x1: 33 million including 10% VAT, the company has not yet received invoice from the lessor Wages payable of December / x1: 140 million Buy materials on credit of company E: 200 million, the maturity is 1/11/ x1 Contract agreements: interest of 1% / month if overdue Company received 20 million mortgage of the lease of warehouse over 5-year from January / x1 Requirements: Which one can be classified as liabilities? Classify into current and non-current liabilities and sum up Described below are certain transactions of Larson Company for 2010: On May 10, the company purchased goods from Fry Company for $50,000, terms 2/10, n/30 VAT 10% The invoice was paid on May 18 On June 1, the company purchased equipment for $60,000 from Raney Company, paying 26.000 in cash and giving a one-year, 9% note for the balance VAT 10% Requirements: (a) Prepare the journal entries necessary to record the transactions above using appropriate dates (b) Prepare the adjusting entries necessary at December 31, 2010 in order to properly report interest expense related to the above transactions Assume straight-line amortization of discounts 3 M Corp has an employee benefit plan for compensated absences that gives employees 15 paid vacation days Vacation days can be carried over indefinitely Employees can elect to receive payment in lieu of vacation days At December 31, 2014, M's unadjusted balance of liability for compensated absences was $30,000 M estimated that there were 200 vacation days available at December 31, 2014 M's employees earn an average of $150 per day In its December 31, 2014, statement of financial position, what amount of liability for compensated absences is M required to report? Lake Co receives nonrefundable advance payments with special orders for containers constructed to customer specifications Information for 2014 is as follows ( millions): What amount should Lake report as a current liability for advances from customers in its Dec 31, 2014, statement of financial position? Prepare journal entries for the following transactions relating to liabilities at a specific month of CoPha company: Current month Salary payment in advance (bank transfer) : 70.000.000 Payroll At month-end: Payable Salary Vacation Social working units salary taken insurance Factory overhead: 70.000.000 3.000.000 1.000.000 - Direct labor 10.000.000 1.000.000 200.000 - Indirect labor Selling 8.000.000 500.000 800.000 G&A 12.000.000 500.000 500.000 Deduct compulsory insurance and labor union fee under current regulations Bonus payables: 25.000.000 Social insurance received from the Social Security Office for this month: 7.000.000 Pay by cash in bank for compulsory insurance and labor union fee of this month Salary deduction: PIT (personal income tax): 4.000.000 Excess advance to employees: 1.000.000 Pay this month’s official payables to employees (after deducting necessary items)  ... Indirect labor Selling 8.000.000 50 0.000 800.000 G&A 12.000.000 50 0.000 50 0.000 Deduct compulsory insurance and labor union fee under current regulations Bonus payables: 25. 000.000 Social insurance... Payroll At month-end: Payable Salary Vacation Social working units salary taken insurance Factory overhead: 70.000.000 3.000.000 1.000.000 - Direct labor 10.000.000 1.000.000 200.000 - Indirect labor...3 M Corp has an employee benefit plan for compensated absences that gives employees 15 paid vacation days Vacation days can be carried over indefinitely Employees can elect to receive