Problem 1. What types of industries have unearned revenue? Why is unearned revenue considered a liability? When is the unearned revenue recognized in the financial statements? Provide a specific example.
Problem 2. Why do companies issue bonds? Would you rather buy a bond at a discount or a premium rate? Explain why. What is the determining factor of whether a bond is sold at a discount, face, or premium?
Problem 3. What are the payroll taxes paid by employees? What are the payroll taxes paid by the employer? What types of reports are used to document to the government the payroll taxes paid by the employee and employer?