Liabilities

Question 1

Estimated warranty liability

Answer 1

Estimated warranty liability minus actual warranty costs incurred

Question 2

Warranty Expense

Answer 2

Estimated warranty % multiplied by total sales or whatever

Question 3

Recognized Contingent Litigation Liability Journal Entry

Answer 3

Estimated Loss from Pending Lawsuit

—–Estimated Liability from Pending Lawsuit

Question 4

What does ARO stand for

Answer 4

Asset Retirement Obligation

Question 5

Cash Surrender Value JE

Answer 5

Insurance Expense (Difference in cash surrender value)
Cash Surrender Value (plug)
———Cash (amount paid)

Question 6

Volunteers replacing someone’s wages

Answer 6

That amount should be included in wages & expenses