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I need an explanation for this Accounting question to help me study.
BE13-3 Takemoto Corporation borrowed $60,000 on November 1, 2014, by signing a $61,350, 3-month, zero-interest-bearing note. Prepare Takemoto's November 1, 2014, entry; the December 31, 2014, annual adjusting entry; and the February 1, 2015, entry.
BE13-8 Kasten, Inc., provides paid vacations to its employees. At December 31, 2014, 30 employees have earned 2 weeks of vacation time. The employees' average salary is $500 per week. Prepare Kasten's December 31, 2014, adjusting entry.
BE13-11 Buchanan Company recently was sued by a competitor for patent infringement. Attorneys have determined that it is possible that Buchanan will lose the case and that reasonable estimate of damages to be paid by Buchanan is $300,000. In light of this case, Buchanan is considering establishing a $100,000 self-insurance allowance. What entry(ies), if any, should Buchanan record to recognize this loss contingency?
EX13-2 (Accounts and Notes Payable) The following are selected 2014 transactions of Sean Astin Corporation.
Sept. 1 Purchased inventory form Encino Company on account for $50,000. Astin records purchases gross and uses a periodic inventory system.
Oct. 1 Issued a $50,000, 12-month, 8% note to Encino in payment of account.
Oct.1 Borrowed $50,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $54,000 note.
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