Cauce Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of he year: -a. What is the amount of current liabilities? -b. Compute working capital. 2. Would your computation be different if the company reported $260,000 worth of contingent liabilities in the notes to its financial tatements? Palouse Company completed the salary and wage payroll for the month of March. The payroll provided the following details: Required: 1. Prepare the journal entry to record the payroll for March, including employee deductions. Assume employees have been paid, but that Palouse has yet to transfer any withholdings to the government. 2. Prepare the journal entry to record the employer's payroll taxes, which have not yet been paid to the government. 3. Provide a combined journal entry to show the payment of all amounts owed to governmental agencies. Note: For all requirements, if no entry is required for a transaction/event, select "No journal entry required" in the first account field. Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. FederalWay, Incorporated, is one of America's most prestigious retailers. Each Christmas season, FederalWay builds up its inventory to meet the needs of Christmas shoppers. A large portion of these Christmas sales are on credit. As a result, FederalWay often collects cash from the sales several months after Christmas. Assume that on November 1 of this year, FederalWay borrowed $4.8 million cash from Third Fifth Bank to meet short-term obligations. FederalWay signed an interest-bearing note and promised to repay the $4.8 million in six months. The annual interest rate was 7 percent. All interest will accrue and be paid when the note is due in six months. FederalWay's accounting period ends December 31. Required: Note: For all requirements, If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars not in millions (i.e., 1,000,000 not 1.0). 1. Prepare the journal entry to record the note on November 1. 2. Prepare any adjusting entry required at the end of the annual accounting period on December 31. 3. Prepare the journal entry to record payment of the note and interest on the maturity date, April 30. On January 1 of this year, Skamania Company completed the following transactions (assume a 8% annual interest rate): ( FV of $1, PV of $1, FVA of \$1, and PVA of \$1) Note: Use the appropriate factor(s) from the tables provided. a. Bought a delivery truck and agreed to pay $61,700 at the end of three years. b. Rented an office building and was given the option of paying $11,700 at the end of each of the next three years or paying $32,000 immediately. c. Established a savings account by depositing a single amount that will increase to $93,400 at the end of seven years. d. Decided to deposit a single sum in the bank that will provide 8 equal annual year-end payments of $41,700 to a retired employee (payments starting December 31 of this year). Required: a. What is the cost of the truck that should be recorded at the time of purchase? b. Which option for the office building results in the lowest present value? c. What single amount must be deposited in this account on January 1 of this year? d. What single sum must be deposited in the bank on January 1 of this year? For each of the following situations, select whether the company should (a) report a liability on the balance sheet, (b) disclose a contingent liability in the footnotes, or (c) not report the situation. Cauce Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of he year: -a. What is the amount of current liabilities? -b. Compute working capital. 2. Would your computation be different if the company reported $260,000 worth of contingent liabilities in the notes to its financial tatements? Palouse Company completed the salary and wage payroll for the month of March. The payroll provided the following details: Required: 1. Prepare the journal entry to record the payroll for March, including employee deductions. Assume employees have been paid, but that Palouse has yet to transfer any withholdings to the government. 2. Prepare the journal entry to record the employer's payroll taxes, which have not yet been paid to the government. 3. Provide a combined journal entry to show the payment of all amounts owed to governmental agencies. Note: For all requirements, if no entry is required for a transaction/event, select "No journal entry required" in the first account field. Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. FederalWay, Incorporated, is one of America's most prestigious retailers. Each Christmas season, FederalWay builds up its inventory to meet the needs of Christmas shoppers. A large portion of these Christmas sales are on credit. As a result, FederalWay often collects cash from the sales several months after Christmas. Assume that on November 1 of this year, FederalWay borrowed $4.8 million cash from Third Fifth Bank to meet short-term obligations. FederalWay signed an interest-bearing note and promised to repay the $4.8 million in six months. The annual interest rate was 7 percent. All interest will accrue and be paid when the note is due in six months. FederalWay's accounting period ends December 31. Required: Note: For all requirements, If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars not in millions (i.e., 1,000,000 not 1.0). 1. Prepare the journal entry to record the note on November 1. 2. Prepare any adjusting entry required at the end of the annual accounting period on December 31. 3. Prepare the journal entry to record payment of the note and interest on the maturity date, April 30. On January 1 of this year, Skamania Company completed the following transactions (assume a 8% annual interest rate): ( FV of $1, PV of $1, FVA of \$1, and PVA of \$1) Note: Use the appropriate factor(s) from the tables provided. a. Bought a delivery truck and agreed to pay $61,700 at the end of three years. b. Rented an office building and was given the option of paying $11,700 at the end of each of the next three years or paying $32,000 immediately. c. Established a savings account by depositing a single amount that will increase to $93,400 at the end of seven years. d. Decided to deposit a single sum in the bank that will provide 8 equal annual year-end payments of $41,700 to a retired employee (payments starting December 31 of this year). Required: a. What is the cost of the truck that should be recorded at the time of purchase? b. Which option for the office building results in the lowest present value? c. What single amount must be deposited in this account on January 1 of this year? d. What single sum must be deposited in the bank on January 1 of this year? For each of the following situations, select whether the company should (a) report a liability on the balance sheet, (b) disclose a contingent liability in the footnotes, or (c) not report the situation