warranty
Q: Norman buys baseball bats from a manufacturer at P10 each. Norman expects to sell 00 000 bats evenly...
A: 22 Total annual Inventory cost Order Units *(1-Cost of capital) 3000*(1-10%) 2700 ...
Q: Accounts Payable Accounts Receivable P 122,500 219,000 Accumulated Depreciation-Building Accumulated...
A: Formula: Net income = Total Revenues - Total Expenses
Q: Blessed Electricals Co (Blessed) is a manufacturer of electrical equipment. It has factories across ...
A: Substantive Procedures - It is a process, steps or tests that creates conclusive evidence regarding ...
Q: Understand the concept of relevant revenues and costs. What makes a revenue or cost relevant? ______...
A: solution concept relevant revenue relevant revenue means the revenue which has the c...
Q: Ariel, Beauty and Cindy decided to form Disprin Partnership with 2:2:1 profit sharing. Both Ariel an...
A: Partners capital Capital is considered to be one of the important element in the partnership busines...
Q: All else being equal, a company would choose to invest in a capital asset if which of the following ...
A: Answer: If the expected accounting rate of return is greater than the required rate of return.
Q: JPS Company manufactures and sells three products. Relevant per unit data concerning each product ar...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: 1. Under the perpetual inventory system, in addition to making the entry to record a sales return, a...
A: Note: “Since you have asked multiple question, we will solve the first question for you. If you want...
Q: no need to explain. What is a cash priority program? a. A guideline for the cash distributions made...
A: At the time of liquidation of partnership business, there are some procedural steps needs to be foll...
Q: Chapter 25 O eBook 4 Show Me How Product Cost Method of Product Costing Voice Com, Inc. uses the pro...
A: Ans c) Product cost mark up percentage for cell phones:::::: Product cost mark up=31.31%.....(276980...
Q: Surat Limited paid cash to acquire an aircraft on January 1, 2020, at a cost of 30,000,000 rupees. T...
A: Component Cost (a) Useful Life (b) Depr. IFRS (a/b) Depr. GAAP Fuselage 10,000,000 40 250,000 ...
Q: Acquisition Cost The following cases are independent. Case A Starling Ltd. bought a building for $...
A: Buildings and land are long-term investments. The life span of these fixed assets is more than 12 mo...
Q: Replace 1 Normal I No Spac. Heading 1 Heading 2 Create and Share Adobe PDF A Select 困、^三三三 Paragraph...
A: Financial advantage or disadvantage is calculated as the difference in cost between the convertibl...
Q: On July 1, 2017, Brent purchases a new automobile for $37,000. He uses the car 92% for business and ...
A: a). Calculation of basis adjustment for depreciation of each year. Year Miles Rate per miles ...
Q: Direct Labor Cost Budgets
A: Budget: budget is an estimate prepared by the company to know its future goals and actions required ...
Q: On January 1, 2018, OCEANIC Company purchased 12% bonds, having a maturity value of P800,000, for P8...
A: Date of Purchase of Bonds= 01-01-2018 Maturity Value= P800000 Purchase price= P860652 Transaction co...
Q: estion 18 Sondela Ltd is a manufacturing company that is planning to use the cost-pl...
A: Cost Plus Pricing: The term "cost plus pricing" refers to a long-term pricing strategy that involves...
Q: On 01/09/20x1 the company received an interest-bearing loan of 12000 euros for a period of 8 months....
A: Interest Amount = Loan amount x rate of interest x no of days or months/total days or months Given t...
Q: Write up the asset and liability and capital accounts to record the following transactions in the re...
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is recor...
Q: he first audit of the books of Windsor Company was made for the year ended December 31, 2021. In exa...
A: Journal entry is the process of documenting commercial transactions for the first time in the books ...
Q: Cost of sales (250 000) Private Limited is a company that specialises in the manufacture and distrib...
A: cash flow as per statement given
Q: . The health care insurance cost of a company for its assembly-line workers would not be considered ...
A: Capital Asset are the expenditure incurred on purchase of asset used for producing and manufacturing...
Q: PJS Seating Company, a manufacturer of chair, had the following data for 2020. Sales 2,400 units Sal...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: The company with the common equity accounts shown here has declared a 12 percent stock dividend at a...
A: Common stock = 400,000 12% stock dividend so common shares will increase by 12%*400,000 = 48,000 N...
Q: Relevant-cost approach to short-run pricing decisions Alexon SL is an electronics business with eigh...
A: GIVEN Alexon SL is an electronics business with eight product lines. Profit data for one of the pr...
Q: Asset value =$ 100000 Asset life period is 17 years Ending book value at the 12th year using decli...
A: solution given Asset value =$ 100000 Asset life period is 17 years Declining balance rate ...
Q: need to explain In the preparation of a schedule of safe payments, cash withheld for future liquidat...
A: Under the schedule of safe payments the possible loss consists of the total of value of non cash ass...
Q: King purchases two components for its primary product. They need 3 of Component A and 2 of Component...
A: Budgeted purchases means how much quantity of material need to be purchased in order to meet product...
Q: E4-8 Preparing a statement of changes in equity [5–10 min] Selected accounts of Guitars by Peter for...
A: Statement of change in equity reconciles the balance between opening capital and ending capital. End...
Q: Sylvestor Systems borrows $50,000 cash on May 15 by signing a 60-day, 5%, $50,000 note. 1. On what...
A: The note payable is the liability for the business which is to be paid on due date with interest.
Q: On January 1, 2021, Exson and Hebs decides to combine their businesses and form a partnership. State...
A: Capital Balance of Exson P59,625 Less: Provision for doubtful accounts receivable(P18,500 * 3%) -P...
Q: During 2020, Red Company introduced a new product carrying a two-year warranty against defects. The ...
A: Warranty liability - It is the liability that company expects to incurred for the repair and replace...
Q: Kim works for a clothing manufacturer as a dress designer. During 2021, she travels to New York City...
A: a. The total deduction for K presuming for no reimbursement is calculated below: Airfare (full) $...
Q: Describe the concept of a group as a single economic unit.
A: A single entity is a business unit for which financial data is collected. A single entity can be a s...
Q: Question 8 Bongani Limited manufactures a product that sells for R120. He manufactur...
A: Break Even units is the units where there is no profit and loss to the business. It is calculated as...
Q: An Equipment was purchased 5 years ago with a price of P150000 with a lifespan of 15 years with a sc...
A: Sunk Cost are the cost incurred in past year now become irrelevant for decision making. The purchase...
Q: Nanometrics, Inc. has a beta of 2.63. If the market return is expected to be 10.10 percent and the r...
A: Required return = Risk-free Rate + Beta*(Expected return of market - Risk free rate )
Q: Problem 13-58 (Static) Budgeted Purchases and Cash Flows (LO 13-4, 5, 6) Mast Corporation seeks your...
A: The budget is prepared to estimate the requirements for the future period.
Q: Determine the balance of the accounts payable - pate office supply company as of october 31. 2. Det...
A: Accounts payable balance shows the credit purchase reduce by cash payment The balance of the account...
Q: anifee Company uses the periodic inventory system. For the current month, the beginning inventory c...
A: Under weighted average cost method using periodic inventory system, value of ending inventory and co...
Q: Question 3: Oman Company's financial information is given in the table below. Sales (OMR) Fixed Cost...
A:
Q: 3. Compute the Current ratio for year 1 and year 2, Quick ratio for year 1 and year 2, Debt to Equit...
A: 1 Current ratio Current Assets/ Current Liabilities Year 1 62000/40000 1.55 Y...
Q: Describe any two concept of accounting
A: Accounting concepts refers to basic assumptions and rules and principles which will follow in the pr...
Q: Rafael and Lucy, married taxpayers, each contribute $2,900 to their respective § 401(k) plans offere...
A: In case AGI ranging between $38,000 and $41,000 they may claim a credit for their retirement plan ...
Q: Toren Inc. employs one person to run its solar management company. The employee’s gross income for t...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: On July 1, Year 2, MODESTA Company purchased P10 million of West Company’s 8% bonds due on July 1, Y...
A:
Q: Required a. & b. Determine the flexible budget variances and also indicate the effect of each varian...
A: A flexible budget is one that allows for easy changes in input variables over time. Flexible Budget...
Q: On January 1, 2019, Cayce Corporation acquired 100 percent of Simbel Company for consideration trans...
A: A consolidation worksheet is a spreadsheet that is used to create annual financial reports for a par...
Q: Gini coefficien
A: The differences and similarities between the Gini Coefficient, the Human Development Index and the G...
Q: Problem #2 Effect of Freight Terms to Inventory Transactions: 1. Jesus Armenta Supplies shipped merc...
A: FOB destination refers to Free on Board Destination. The term "free on board destination" means that...
Arthur Company sells 1,000 units of radio sets at P9,000 each for cash. Each radio set is under warranty for one year and
the company has estimated from past experience that warranty cost will probably average P500 per unit and that only
60% of the units sold will be returned for repairs. During the year, actual payment incurred for repairs is P180,000.
What amount would be recorded as estimated warranty liability at the end of the year?
a. 300,000 c. 480,000
b. 180,000 d. 120,000
Step by step
Solved in 3 steps
- Blake Department Store sells television sets with one-year warranties that cover repair and replacement of television parts. In the month of June, Blake sells forty television sets with a per unit cost of $500. If Blake estimates warranty fulfillment at 10% of sales, what would be the warranty liability reported in June? A. $1,000 B. $2,000 C. $500 D. $20,000Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?Homeland Plus specializes in home goods and accessories. In order for the company to expand its business, the company takes out a long-term loan in the amount of $650,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 8.5%. Each year on December 31, the company pays down the principal balance by $80,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.
- On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)
- A companys sales for January are $250,000. If the company projects warranty obligations to be 5% of sales, what is the warranty liability amount for January?Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 6,000 treats at $1 per treat. Terms of the purchase are 2/10, n/30. Barkers pays half the amount due in cash on February 28 but cannot pay the remaining balance due in four days. The supplier renegotiates the terms on March 4 and allows Barkers to convert its purchase payment into a short-term note, with an annual interest rate of 6%, payable in 9 months. Show the entries for the initial purchase, the partial payment, and the conversion.Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.
- Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?McMasters Inc. specializes in BBQ accessories. In order for the company to expand its business, they take out a long-term loan in the amount of $800,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 9%. Each year on December 31, the company pays down the principal balance by $50,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.Airplanes Unlimited purchases airplane parts from a supplier on March 19 at a quantity of 4,800 parts at $12.50 per part. Terms of the purchase are 3/10, n/30. Airplanes pays one-third of the amount due in cash on March 30 but cannot pay the remaining balance due. The supplier renegotiates the terms on April 18 and allows Airplanes to convert its purchase payment into a short-term note, with an annual interest rate of 9%, payable in six months. Show the entries for the initial purchase, the partial payment, and the conversion.
