Balance Sheet Assignment | Top Universities

Your business consists of leasing office space to large businesses. On 11/30/07 a lease signed a three-year lease effective 1/1/08 and gave you $300,000 for the entire lease period. You are preparing financials as of 12/31/07. Prepare the Liability section of the Balance Sheet

9. You purchased $25,000 of inventory on credit 60 days ago. You are currently in a bind for cash and you convince the vendor to extend the time for payment 90 days. You give the vendor an interest-bearing note for $25,000 @ 10%, 90 days have elapsed and you pay the bill. 10. You need to borrow $1,000,000 for one year. The bank is willing to accept a discounted note at 15%. You accept the bank’s offer. 11. You manufacture a product that has a 36-month warranty. The history of warranty work performed on this product indicates a 10% defect repair. In March you sold $100,000 of product. Record the contingent liability 12. In the Month of June, you performed warranty work using $1,200 parts. Get Accounting Homework Help Today.