Accounting Challenge 8.1

Accounting Decision Files

Current Liabilities

About this activity

Campus Cycle Repair · you gather the facts by interviewing, not by reading a handout.

Campus Cycle Repair owes money in several directions at once — suppliers, the bank, employees, customers who have paid for work not yet done. Some of those obligations are recorded and some are not, and a few are estimates rather than known amounts. Your job is to establish the shop's real short-term obligations, including the ones nobody has written down yet.

Watch the tutorial video

Length: 16 minutes, 3 seconds

Open the tutorial video in a new window

Interview Riley and Morgan

Neither character has the whole picture. Morgan can tell you what the records show; Riley can tell you why. Ask real questions, follow up on anything that does not add up, and reconcile the two accounts before you answer anything.

Riley — founder and owner. Knows the business story and what actually happened, but does not keep the books. Optimistic, cautious about debt, and candid when working from memory.
Interview Riley

Morgan — handled the accounting records. Organized, practical, and precise. Morgan knows what was recorded and how.
Interview Morgan

Questions worth asking

You may ask your own questions. These will get you started.

Riley, why are you considering adding a second repair bay?
Riley, what did Campus Cycle Repair promise the customers who bought maintenance plans?
Riley, when is the final December payroll scheduled to be paid?
Morgan, how should the sales tax collected from customers be recorded?
Morgan, how much of the maintenance-plan cash was earned by December 31?
Morgan, how did the actual warranty work affect the warranty liability?

Then answer in Canvas

The questions are in Canvas, in the quiz named Accounting Challenge 8.1.

Interview both characters before you start the quiz.
The questions ask about evidence you gather in the interviews, so the tutorial video alone will not be enough.
You have one attempt, and you will get 5 questions.
Questions appear one at a time, and you cannot return to a question after you submit it.
Keep this page open in a second window so you can go back to an interview while you work.
Do not paste quiz questions into the interviews. Gather facts, then reason from them.

If something does not work

Email Dr. Tietz at wtietz@kent.edu with your section number and what happened. Do not wait until the due date has passed.