Which of the following is not a characteristic of a liability?

Jane’s Donut Company borrowed $191,000 on January 1, 2024, and signed a two-year note bearing interest at 14%. Interest is payable in full at maturity on January 1, 2026. In connection with this note, Jane’s should report interest expense at December 31, 2024, in the amount of:

On December 31, 2024, L Incorporated had a $3,000,000 note payable outstanding, due July 31, 2025. L borrowed the money to finance construction of a new plant. L planned to refinance the note by issuing long-term bonds. Because L temporarily had excess cash, it prepaid $650,000 of the note on January 23, 2025. In February 2025, L completed a $4,500,000 bond offering. L will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during 2025. On March 13, 2025, L issued its 2024 financial statements. What amount of the note payable should L include in the current liabilities section of its December 31, 2024, balance sheet?

A company should accrue a loss contingency only if the likelihood that a liability has been incurred is:

The following selected transactions relate to liabilities of Chicago Glass Corporation for 2024. Chicago’s fiscal year ends on December 31.

On January 15, Chicago received $7,900 from Henry Construction toward the purchase of $75,000 of plate glass to be delivered on February 6.
On February 3, Chicago received $7,600 of refundable deposits relating to containers used to transport glass components.
On February 6, Chicago delivered the plate glass to Henry Construction and received the balance of the purchase price.
First quarter credit sales totaled $790,000. The state sales tax rate is 4% and the local sales tax rate is 2%.

Required:

Prepare journal entries for the above transactions.

Note: If no entry is required for a transaction/event, select “No journal entry required” in the first account field.