intermediate accounting(fifteenth edition) ch13

CHAPTER 13

Current Liabilities and Contingencies

ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)

Topics

1. Concept of liabilities;

definition and classification of current liabilities.

Brief

Questions Exercises Exercises 1, 2, 3, 4, 6, 8

1, 16

Concepts Problems for Analysis 1, 2

1, 2

2. Accounts and notes 7, 11

payable; dividends payable. 3. Short-term obligations

expected to be refinanced. 4. Deposits and advance

payments. 5. Compensated absences

and bonuses. 6. Collections for third parties. 7. Contingent liabilities

(General). 8. Guaranties and warranties. 9. Premiums and awards

offered to customers.

9, 10 5, 12 13, 14, 15 16

1, 2, 3 4 5 8, 9 6, 7

2, 16 3, 4 5, 6, 16 7, 8, 9, 16 13, 16 10, 11, 16 12, 15, 16 14

1, 2 3, 4

1, 2 3 2

17, 18, 19, 10, 11 20, 22 21, 23 24, 25

13, 14 15 10, 11, 12

10, 11, 13 4, 5, 6 5, 6, 7, 12, 14

6, 7

8, 9, 12, 14 2, 10, 11, 13 9

5, 6

10. Self-insurance, litigation, 26, 27, 28

claims, and assessments, asset retirement obligations. 11. Presentation and analysis.

29, 30, 31

17, 18, 19 3

Copyright ? 2013 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only) 13-1

ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE)

Learning Objectives

Questions

1. Describe the

nature, type, and valuation of current liabilities. 2. Explain the

classification issues of short-term debt

expected to be refinanced.

1,2,3,4,7,8

Brief Exercises 1, 2, 3, 4, 5, 6

Exercises 1, 2, 7

Concepts

for Analysis CA13-1

Problems 1, 2

5,6,9,10,11,12

4 3, 4

CA13-2, CA13-3

3. Identify types of 13,14

employee-related liabilities. 4. Identify the

criteria used to account for and disclose gain and loss

contingencies. 5. Explain the

accounting for different types of loss

contingencies. 6. Indicate how to

present and analyze

liabilities and contingencies.

15,16

7, 8, 9 5, 6, 8, 9 3, 4

10, 11, 12, 13, 14, 15

13 7, 10, 11, 13

CA13-4, CA13-5

17, 18,19, 20,21, 22, 23, 24, 25, 26, 27, 28 29,30,31

10, 11, 12, 13, 14, 15 10, 11, 12, 13, 14, 15

2, 5, 6, 7, 8, CA13-6, 9, 10, 11, 12, CA13-7 13, 14

16, 17, 18, 19

9

13-2

Copyright ? 2013 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only)

ASSIGNMENT CHARACTERISTICS TABLE

Item E13-1 E13-2 E13-3 E13-4 E13-5 E13-6 E13-7 E13-8 E13-9 E13-10 E13-11 E13-12 E13-13 E13-14 E13-15 E13-16 E13-17 E13-18 E13-19

P13-1 P13-2 P13-3 P13-4 P13-5 P13-6 P13-7 P13-8 P13-9 P13-10 P13-11 P13-12 P13-13 P13-14

CA13-1 CA13-2 CA13-3 CA13-4 CA13-5 CA13-6 CA13-7

Description

Balance sheet classification of various liabilities. Accounts and notes payable. Refinancing of short-term debt. Refinancing of short-term debt. Compensated absences. Compensated absences. Adjusting entry for sales tax. Payroll tax entries. Payroll tax entries. Warranties. Warranties.

Premium entries. Contingencies.

Asset retirement obligation. Premiums.

Financial statement impact of liability transactions. Ratio computations and discussion. Ratio computations and analysis.

Ratio computations and effect of transactions.

Current liability entries and adjustments. Liability entries and adjustments. Payroll tax entries. Payroll tax entries.

Warranties, accrual, and cash basis. Extended warranties.

Warranties, accrual, and cash basis. Premium entries.

Premium entries and financial statement presentation. Loss contingencies: entries and essay. Loss contingencies: entries and essays. Warranties and premiums. Liability errors.

Warranty and coupon computation.

Nature of liabilities.

Current versus noncurrent classification. Refinancing of short-term debt. Loss contingencies. Loss contingency.

Warranties and loss contingencies. Warranties.

Level of Difficulty Simple Moderate Simple Simple Moderate Moderate Simple Simple Simple Simple Moderate Simple Moderate Moderate Moderate Moderate Simple Simple Moderate

Simple Simple Moderate Simple Simple Simple Moderate Moderate Moderate Simple Moderate Moderate Moderate Moderate

Moderate Moderate Moderate Simple Simple Simple Moderate

Time (minutes) 10–15 15–20 10–12 20–25 25–30 25–30 5–7 10–15 15–20 10–15 15–20 15–20 20–30 25–30 25–35 30–35 15–20 20–25 15–25 25–30 25–35 20–30 20–25 15–20 10–20 25–35 15–25 30–45 25–30 35–45 20–30 25–35 20–25 20–25 15–20 30–40 15–20 15–20 15–20 20–25

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SOLUTIONS TO CODIFICATION EXERCISES

CE13-1

Master Glossary

(a) An asset retirement is an obligation associated with the retirement of a tangible long-lived asset.

(b) Current liabilities is used principally to designate obligations whose liquidation is reasonably

expected to require the use of existing resources properly classifiable as current assets, or the creation of other current liabilities. See paragraphs 210-10-45-5 through 45-12.

(c) Reasonably possible means the chance of the future event or events occurring is more than

remote but less than likely.

(d) A warranty is a guarantee for which the underlying is related to the performance (regarding

function, not price) of nonfinancial assets that are owned by the guaranteed party. The obligation may be incurred in connection with the sale of goods or services; if so, it may require further performance by the seller after the sale has taken place.

CE13-2

According to FASB ASC 410-20-50 (Asset Retirement and Environmental Obligations):

50-1 An entity shall disclose all of the following information about its asset retirement obligations:

(a) A general description of the asset retirement obligations and the associated long-lived

assets

(b) The fair value of assets that are legally restricted for purposes of settling asset retirement

obligations

(c) A reconciliation of the beginning and ending aggregate carrying amount of asset retirement

obligations showing separately the changes attributable to the following components, whenever there is a significant change in any of these components during the reporting period:

1. Liabilities incurred in the current period 2. Liabilities settled in the current period 3. Accretion expense

4. Revisions in estimated cash flows.

50-2 If the fair value of an asset retirement obligation cannot be reasonably estimated, that

fact and the reasons therefor shall be disclosed.

13-4

Copyright ? 2013 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only)