current liabilities increase and current assets increase. current liabilities increase and stockholders' equity increases. current liabilities decrease and stockholders' equity decreases. current liabilities increase and stockholders' equity decreases. No entry is needed for accrual of Interest expense. On December 31.2015. Estimated Warranty Payable is reported on the balance sheet for White Decker Company. The liability pertains to products sold in 2015 with five year warranties. How should the Estimated Warranty Payable be reported on the balance sheet at December 31.2015? negative stockholders' equity. a long-term liability only. a current liability only. a current liability and a long-term liability. a current liability and negative stockholders' equity. Mariano Corporation sells 10.000 units of inventory during the first year of operations for $500 each. The selling price includes a one-year warranty on parts. It is estimated that 3% of the units will be defective and that repair costs are estimated to be $50 per unit In the year of sale, warranty contracts are honored on 80 units for a total cost of $4,000. What amount will be reported as Estimated Warranty Liability at the end of the year? 54.000 $6,000 $11,000 $15,000 None of the above answers is correct. Kathy's Corner Store has total cash sales for the month of $36,000 excluding sales taxes. If the sales tax rate Is 5%, what journal entry Is needed? (Ignore Cost of Goods Sold.) debit Cash $37,800. credit Sales $37,800 debit Cash $36,000 and credit Sales $36,000 C) debit Cash $34100. debit Sales Tax Receivable for $1,800 and credit Sales for $36,000 debit Cash $37,800. credit Sales $36,000 and credit Sales Tax Payable $1,800 debit Cash $36.000, debit Safes Tax Receivable $1,800. credit Sales $36,000, and credit Sales Tax Payable $1,800. NBC Corporation issued $600.000.10%. 5-year bonds on January 1.2014 for $648,930 when the market interest rate was 8%. Interest is paid semiannually on January 1 and July 1. The corporation uses the effective-interest method to amortize bond premium. The total amount of bond interest July 1.2014 is: $24.000. $25,957. $28.800. 530,000. Cannot be determined from the data given. On January 1.2014. Chin Corporation issued $3.000.000.14%. 5-year bonds The bond interest is payable on January 1 and July 1. The bonds sold for $3,219,600 The market rate degree for these bonds was 12%. Under the effective-,merest method, what is the interest expense for the six months ending July 1, 2014