Identify Whether the Following December 31, 2012 Information from Jessica

question 4

Essay

Identify whether the following December 31, 2012 information from Jessica Industries would be a known, estimated, or contingent liability:
1. Salary expense for the last payroll for the year was $52,000. It is expected to be paid out January 2, 2013.
2. The company's December taxable sales were $253,000. Jessica Industries is required to collect HST (13%) on its sales which is to be remitted January 5, 2013.
3. Jessica Industries extends its customers a one-year warranty on its product sold. The rate of warranty repairs is 2% of sales.
4. The company had waste which polluted a nearby lake. The clean-up is likely to cost $325,000-$350,000.
5. Issued $100,000, 8%, five-year bond when the market rate of interest was 10%.

---

Definitions:

Sense Of Independence

The feeling or perception of being self-sufficient and capable of making decisions without reliance on others.

Socialization With Peers

The process of learning social norms, values, and behaviors through interactions with peers.

Lower-Income Households

Families or living units earning below a specified threshold of income, often facing economic hardships.

Involuntary Immigration

Involuntary immigration refers to the forced movement of people from their homeland to another country, often due to conflict, persecution, or environmental disasters.