Mary Pierce is the controller of Arnold Corporation and is responsible for the preparation of the year-end

Question:

Mary Pierce is the controller of Arnold and is responsible for the preparation of the year-end financial statements. The following transactions occurred during the year.
a. Bonuses to key employees based on net income for 2019 are estimated to be $150,000.
b. On December 1, 2019, the company borrowed $900,000 at 8% per year. Interest is paid quarterly.
c. Credit sales for the year amounted to $10,000,000. Arnold's expense provision for doubtful accounts is estimated to be 2% of credit sales.
d. On December 15, 2019, the company declared a $2 per share on the 40,000 ordinary shares outstanding, to be paid on January 5, 2020.
e. During the year, customer advances of $160,000 were received; $50,000 of this amount was earned by December 31, 2019.
Instructions
For each item above, indicate the dollar amount to be reported as a current liability. If a liability is not reported, explain why.
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