Reference no: EM132461142

Mary Pierce is the controller of Arnold Corporation and is responsible for the preparation of the year-end financial statements. The following transactions occurred during the year.

Point a. Bonuses to key employees based on net income for 2019 are estimated to be $150,000.

Point b. On December 1, 2019, the company borrowed $900,000 at 8% per year. Interest is paid quarterly.

Point 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.

Point d. On December 15, 2019, the company declared a $2 per share dividend on the 40,000 ordinary shares outstanding, to be paid on January 5, 2020.

Point e. During the year, customer advances of $160,000 were received; $50,000 of this amount was earned by December 31, 2019.

Instructions

Question 1: For each item above, indicate the dollar amount to be reported as a current liability. If a liability is not reported, explain why.