intermediate accounting 2

Question 1: [4 marks] Use the following information to answer the questions: Essa Murad company sold 400 dishwashers during 2019 at $1,500 each. During 2019, the company spent $15,000 servicing the 4-year warranties (2019,2020,2021,2022) that is not an integral part of the sale and its selling price were $80,000 for the 400 dishwashers. Estimate revenues to be recognized on a straight-line basis. Instructions Question Answer What is the effect of all previous transactions on profit for 2019? What is the total current liabilities to be reported at 31/12/2019 statement of financial position? Question 4: [6 marks] use the following information to answer questions (1-4) Malek Co. sells its $300,000 of 10% bonds, dated January 1, 2019, on March 1, 2019, its due after four years. The interest is paid semiannually (July 1, and January 1). Malek Co prepares its financial statement at December 31 each year. The bonds yield 12%, selling for 283,250. Question Answer 1- What is the cash amount to be received from bond's purchasers (investors) at March 1, 2019? 2- What is the interest expense for 2019? Answer Question 3- write the required entry/ entries at July 1, 2019. 4- write the required entry/ entries at December 31, 2019. Question 3: [4 marks) What is the accounting treatment for the following two independent situations, at Hamzah books? Questions Answers 1. During 2021. Hamzah Inc. became involved in a lawsuit with the government. Hamzah's attorney believes it is possible that Hamzah Inc. will have to pay the government between $400,000 and $900,000 2. During 2021, Hamzah Inc, became involved in a lawsuit with Natshah com. Hamzah's attorney believes it is probable that Hamzah Inc. will receives $100,000 as a compensation from the other party engaged in the lawsuit