warranty
Q: n January 1, 2019, ABC Company acquired a machine for 4,500,000. The machine has a useful life of 10...
A: A corporation can use the revaluation model to carry a fixed asset at its revalued value. Following ...
Q: 24. On April 1, 2015, X Ltd. purchased a machinery for Rs.12.00,000. On Oct 1, 2017, a part of the m...
A: Depreciation shows the decrease in the value of assets. it gradually decreases the original cost of ...
Q: Venus Creations sells window treatments (shades, blinds, and awnings) to both commercial and residen...
A: Total number of hours used in travelling = 940 + 600 = 1,540 hours Total number of setups = 350 + 2...
Q: Jupplemens 1equired by forty - six customers. For the year 20 or 2018 Velshi Printers has decided to...
A: Introduction:- ABC costing system used allocation of overheads based on cost drivers. Activity-bas...
Q: What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination?
A: Since there is no revenue and expense of the acquire upto the date of acquisition.
Q: The statement of financial position for Aminah Kaya Berhad together with relevant notes are given be...
A: Financial statements of the company includes the cash flow statement. It is cash book but shows the ...
Q: Problem 3 Bond Amortization (Discount) On January 1, 2022, Goldeneye Corp. issued a 5-year bond with...
A: Date I Opening Balance II Interest Payments @12% III = (II*12%) Interest Expense@10% IV= (600...
Q: The Robbins Company manufactures special purpose machines to order. On January 1, there were two job...
A: Job order costing is used for personalized products or services to fulfill some particular orders or...
Q: Identify, from the above scenario, the risks and control objectives relating to cash. ...
A: In the present case it's evident that there are a lot of cash sales is happening and cash is been de...
Q: ls inventory Details, beginning P80,000.00, Purchases P55,000.00, Freight In P5,000.00, Freight out ...
A: Direct materials are materials that are consumed during the manufacturing process and directly ident...
Q: ll be a tax
A: Tax refers to the percentile charges imposed by the authoritative government over the income gained ...
Q: a) Compute Everlast Manufacturing Company's predetermined manufacturing overhead rate for 2020. b) D...
A: Predetermined overhead rate refers to the rate which is used by the company to allocated its budgete...
Q: Sinking Fund MethodGiven:FC = 2,000,000.00 pesosSV = 300,000.00 pesosi = 12.00%n = 9 yearsa. A = ?b....
A: Sinking Fund Method Sinking fund method is another useful method to calculate the depreciation for t...
Q: Klumper Corporation is a divers the following stx activity cost pools and activity rates: manufactur...
A: Overheads are the indirect expenses which are not traceable directly on the cost object.
Q: Company A had a machine with a carrying amount of P450,000. Company B had a delivery vehicle with a ...
A: Gain (loss) on exchange = Fair value of assets received + Cash received - Carrying value of the asse...
Q: Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6, and each clock sells f...
A: Cost volume profit analysis is the technique used by the management for decision-making. These metho...
Q: What are the components of audit risk and how do these relate to each other?
A: The possibility that financial statements are significantly incorrect, even if the audit opinion cer...
Q: The following is the Trial Balance of Sonia HR Enterprises, a dealer in HR Software, as at 31st Dece...
A:
Q: f there are accounts larger than overall materiality, does that mean that all those accounts needs t...
A: Solution Concept Materiality Materiality in an audit of financial statements as prov...
Q: Net credit sales = $400,000 Net income = $100,000 Average total assets = $80,000 Average accounts...
A: calculation of average collection period are as follows
Q: when the idea first occurred to her it seemed like such a win win situation now she wasn’t so
A: Introduction Ethical dilemma is a situation when moral standards and principles are in conflict with...
Q: In an income statement, total Sales and revenue in $230,000 and total operating expenses is $80.000....
A: Solution Net income = Total sales and revenue - Total operating expenses - Tax.
Q: Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Ma...
A: The forecast made for future revenues and expenses which is expected to be changed with change in fu...
Q: YOU CAN DO IT Corporation has equipment with a carrying value of 450,000 on December 31, 2021. The f...
A: Solution: Impaired asset is an assets which is having market value less than the value listed on bal...
Q: Warner Company's year-end unadjusted trial balance shows accounts recelvable of $115,000, allowance ...
A: To generate a journal entry, you input transaction data into your company's books. Your journal entr...
Q: Use the following schedule to answer the questions below. Units Cost per unit Beginning inventory 10...
A: Under LIFO method the units sold will be first from the latest purchases and ending inventory should...
Q: e the incremental method to record the issuance of the bonds and warrants.
A: Solution Working note Method to be used =incremental method to record the issuance of the bo...
Q: he Town Debt Service Fund accumulates resources to pay its $3 million general obligation debt. The d...
A: These are the accounting transactions that are having a monetary impact on the financial statement o...
Q: For years. Worley belleved profit. However, in the face of declining profits, Worley decided to impl...
A: Activity based costing is the method which uses activity rates for assigning overheads like commissi...
Q: The following events took place for Collins Manufacturing Company during March, the first month of i...
A: Gross profit = Sales - Cost of goods sold Net Income = Gross profit - Total operating expenses Work ...
Q: The following information has been gathered onthe costs and effectiveness of the two treatments, Aan...
A: Introduction:- A cost-effectiveness research looks at the costs of one or more medicines as well as ...
Q: Which is true regarding the Non controlling interest? * [a] It is accounted for in the subsidiary’...
A: Solution Concept The consolidated financial statements is required to be prepared by the parent comp...
Q: Find the monthly payment needed to save a P240000 down payment for a house in an annuity that pays 1...
A: Future value (FV) = P240,000 Interest rate = 1.3% Monthly interest rate (r) = 1.3%/12 = 0.1083333333...
Q: Suga Corp. had a checkbook balance on December 31, 2021 of P10,000,000 and held the following items ...
A: Check Book balance as on Dec 31,2021 10000000 Less: Check oayable to Duga on Jan 04,2021 (3000000)...
Q: The IASB Conceptual Framework for Financial Reporting has identified certain qualitative characteris...
A: Financial reporting is publishing financial statements for internal as well as external use.
Q: An investor who is in a 33% tax bracket for normal (ordinary) income buys a stock for $5,000 and sel...
A: Financial Instrument: A financial instrument alludes to a resource that can be exchanged by financia...
Q: Last year Minden Company Introduced a new product and sold 25,100 units of It at a price of $95 per ...
A: In Cost , The. variable . cost and fixed cost and incurred. this is eaten under marginal costing . U...
Q: Preincorporation. Cummings, Okawa, and Taft arerecent college graduates who want to form a corporati...
A: Since a promoter cannot serve as an agent for an unidentified principle, he or she is individually a...
Q: The notes receivable account of Kilo, Inc. consisted of the following: 1. 60-day note of P10,000...
A: The note receivable is an asset for the business, which is due for payment from customers on future ...
Q: Minnie Oil Co. produces three joint products: gasoline, kerosene, and naphtha. Total joint productio...
A: Total Joint Product Cost = 59500 Total sales = Units * Selling price per unit Total Weights as per u...
Q: Amazon acquired 100 percent of Ferries for P275,000. At the date of acquisition, Ferries had the fol...
A: Consolidation- The consolidated financial statement, which represents the financial status of both a...
Q: . What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet eliminatio...
A: Since there is no revenue and expense of the acquire upto the date of acquisition.
Q: Allowance for Bad Debts is what kind of account?
A: There are two ways by which bad debt expense is reported by company which is direct method and allow...
Q: On January 1, Oriole Corporation had 83000 shares of $10 par value common stock outstanding. On June...
A: The company can raise funds by various methods. Some of them are, by way of issuing common stock, is...
Q: The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-mon...
A: The question is based on the concept of the cost accounting
Q: Jungga Inc is considering relaxing its credit standards to increase its sales. As a result of the pr...
A: Evaluation of project proposal is done by calculating the change i.e. increase or decrease in the fi...
Q: A machine costs rs. 22,000 and it's salvage value after its useful life of 5 years is rs. 4,000. Ear...
A: Answer: Given Machine cost 22000 Salvage value 4000 Useful life 5 Depreciation ye...
Q: what were JT’s annual sales and DSO?
A: current ratio = current asset/current liability 1.8=67500/current liabilities current liabilities = ...
Q: IMOlal WSPRS produces two types of metal lamps. Syracuse manufactures 19,000 basic lamps and 5,300 d...
A: Solution.. Direct labor hours per lamp Basic = 0.60 Designer = 0.90 Units produced Basic = 1...
Q: Name three budget preparation approaches
A: Budget refers to a financial plan for a defined period prepared by an organisation consisting of est...
Sales made in 2021 for $3,000,000 includes a 2-year warranty coverage, included in the price. The estimated cost for warranty is expected to be 2% for the first year and 5% for the second year. How much warranty expense should be recorded in 2021?
Question 4 options:
|
$60,000 |
|
|
$150,000 |
|
|
$100,500 |
|
|
$210,000 |
Step by step
Solved in 2 steps
- Short-Term Debt Expected to Be Refinanced On December 31, 2019, Atwood Table Company has 8 million of short-term notes payable owed to City National Bank. On February 1, 2020, Atwood negotiates a revolving credit agreement providing for unrestricted borrowings up to 6 million. Borrowings will bear interest at 1% over the prevailing prime rate, will have stated maturities of 120 days, and will be continuously renewable for 120-day periods for 4 years. Atwood plans to refinance as much as possible of the notes outstanding with the proceeds available from this agreement. Assume that Atwoods December 31, 2019, year-end financial statements are issued on March 30, 2020. Required: Prepare a partial December 31, 2019, balance sheet for Atwood showing how the 8 million short-term debt should be reported. Next Level What is the justification for allowing short-term debt that is expected to be refinanced to be classified as a long-term liability.Short-Term Debt Expected to Be Refinanced On December 31, 2019, Excello Electric Company had 1 million of short-term notes payable due February 7, 2020. Excello expected to refinance these notes on a long-term basis. On January 15, 2020, the company issued bonds with a face value of 900,000 for 882,000. On January 22, 2020, the proceeds from the bond issue plus additional cash held by Excello on December 31, 2019, were used to liquidate the 1 million of short-term notes. The December 31, 2019, balance sheet is issued on February 12, 2020. Required: Prepare a partial balance sheet as of December 31, 2019, showing how the 1 million of short-term notes payable should be disclosed. Include an appropriate footnote for proper disclosure.Non-Interest-Bearing Note Payable: Present Value On January 1, 2019, Northern Manufacturing Company bought a piece of equipment by signing a non-interest-bearing 80,000, 1-year note. The face value of the note includes the price of the equipment and the interest. The effective interest rate is an annual rate of 16%, and the note is to be paid in four 20,000 quarterly installments on March 31, June 30, September 30, and December 31. The price of the equipment is the present value of the four payments discounted at the effective interest rate. Required: Prepare all journal entries to record the preceding information. Present value techniques should be used. If Northerns financial statements were issued on June 30, 2019, what amount would the company report as notes payable?
- 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?Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600Cash Flow Amounts On January 1, 2019, Philip Holding invests 40,000 in an annuity to provide 8 equal semi-annual payments. Interest is 10%, compounded semiannually. Required: Compute the equal semiannual amounts that Philip will receive assuming that the first withdrawal is to be received on: July 1, 2019 January 1, 2019 July 1, 2022 January 1, 2024
- Hamlet Corporation purchases computer equipment at a price of 100,000 on January 1, 2019, paying 40,000 down and agreeing to pay the balance in three 20.000 annual instalments beginning December 31, 2019. It is not possible to value either the equipment or the 60,000 note directly; how-ever, Hamlet's incremental borrowing rate is 12%. Required: 1. Prepare a schedule to compute the interest expense and discount amortization on the note. 2. Prepare all the journal entries for Hamlet to record the issuance of the note, each annual interest expense, and the three annual installment payments.Bonus Obligation and Income Tax Expense James Kimberley, president of National Motors, receives a bonus of 10% of Nationals profits above 1,500,000, before the bonus and the corporations income taxes are deducted. Nationals effective income tax rate is 21%. Profits before income taxes and his bonus are 5,000,000 for 2019. Required: 1. Compute the amount of Kimberleys bonus for 2019. 2. Compute National Motors income tax expense for 2019. 3. Prepare journal entries at the end of 2019 to record the bonus and income taxes. 4. Show how the bonus and income taxes would be reported on National Motors December 31,2019, balance sheet.Discounting of Notes Payable On October 30, 2019, Sanchez Company acquired a piece of machinery and signed a 12-month note for 24,000. The lace value of the note includes the price of the machinery and interest. The note is to be paid in four 6,000 quarterly installments. The value of the machinery is the present value of the four quarterly payments discounted at an annual interest rate of 16%. Required: 1. Prepare all the journal entries required to record the preceding information including the year-end adjusting entry and any payments. Present value techniques should be used. 2. Show how the preceding items would be reported on the December 31, 2019, balance sheet.
- Determining Loan Repayments Jerry Rockness needs 40,000 to pay off a loan due on December 31, 2028. His plans included the making of 10 annual deposits beginning on December 31, 2019, in accumulating a fund to pay off the loan. Without making a precise calculation, Jerry made 3 annual deposits of 4,000 each on December 31, 2019, 2020, and 2021, which have been earning interest at 10% compounded annually. Required: What is the equal amount of each of the next 7 deposits for the period December 31, 2022, to December 31, 2028, to reach the fund objective, assuming that the fund will continue to earn interest at 10% compounded annually?On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000Spath 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.)
