Warranty: It is an agreement made by the company to provide guarantee against the defects in the products. Vacation expense: Vacation expense is an estimated expense for the company which the company should pay to the employees as extra salary over the entire year. For example: If an employee works 49 weeks in a year, company should pay 3 weeks’ ( 52 weeks – 49 weeks ) extra salary as a vacation expense. Bonus: Bonus is an additional payment given by the employer to their employees with regular wages for their good performance. To Journalize : Warranty expense for the company during 2016.

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Answer 1

Question

Chapter 11, Problem 11.22E

To determine

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

Vacation expense: Vacation expense is an estimated expense for the company which the company should pay to the employees as extra salary over the entire year. For example: If an employee works 49 weeks in a year, company should pay 3 weeks’ (52 weeks – 49 weeks) extra salary as a vacation expense.

Bonus: Bonus is an additional payment given by the employer to their employees with regular wages for their good performance.

To Journalize: Warranty expense for the company during 2016.

To determine

To Journalize: Warranty payments for the company.

To determine

To journalize: Vacation benefit expense.

To determine

To journalize: employee bonus expense.

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During 2016, Namnama Company introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to peso sales are 4% within 12 months following sale and 6% in the second 12 months following sale. The entity reported sales of P5,000,000 for 2016 and P6,000,000 for 2017. The actual expenditures incurred amounted to P150,000 for 2016 and P550,000 for 2017. 1. What is the warranty expense for 2016? a. 500,000 b. 200,000 c. 250,000 d. 300,000 2. What is the estimated warranty liability on December 31, 2016? a. 350,000 b. 150,000 c. 100,000 d. 50,000 3. What is the warranty expense for 2017? a. 650,000 b. 600,000 c. 500,000 d. 550,000 4. What is the estimated warranty liability on December 31, 2017? a. 360,000 b. 400,000 c. 240,000 d. 100,000

Leppard Corporation sells DVD players. The corporation also offers its customers a 4-year warranty contract. During 2017, Leppard sold 20,000 warranty contracts at $99 each. The corporation spent $180,000 servicing warranties during 2017. Prepare Leppard’s journal entries for (a) the sale of contracts, (b) the cost of servicing the warranties, and (c) the recognitionof warranty revenue. Assume the service costs are inventory costs.

Answer 2

Question

Chapter 11, Problem 11.22E

To determine

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

Vacation expense: Vacation expense is an estimated expense for the company which the company should pay to the employees as extra salary over the entire year. For example: If an employee works 49 weeks in a year, company should pay 3 weeks’ (52 weeks – 49 weeks) extra salary as a vacation expense.

Bonus: Bonus is an additional payment given by the employer to their employees with regular wages for their good performance.

To Journalize: Warranty expense for the company during 2016.

To determine

To Journalize: Warranty payments for the company.

To determine

To journalize: Vacation benefit expense.

To determine

To journalize: employee bonus expense.

Expert Solution & Answer

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Answer 3

Question

Chapter 11, Problem 11.22E

To determine

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

Vacation expense: Vacation expense is an estimated expense for the company which the company should pay to the employees as extra salary over the entire year. For example: If an employee works 49 weeks in a year, company should pay 3 weeks’ (52 weeks – 49 weeks) extra salary as a vacation expense.

Bonus: Bonus is an additional payment given by the employer to their employees with regular wages for their good performance.

To Journalize: Warranty expense for the company during 2016.

To determine

To Journalize: Warranty payments for the company.

To determine

To journalize: Vacation benefit expense.

To determine

To journalize: employee bonus expense.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 11, Problem 11.22E

To determine

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

Vacation expense: Vacation expense is an estimated expense for the company which the company should pay to the employees as extra salary over the entire year. For example: If an employee works 49 weeks in a year, company should pay 3 weeks’ (52 weeks – 49 weeks) extra salary as a vacation expense.

Bonus: Bonus is an additional payment given by the employer to their employees with regular wages for their good performance.

To Journalize: Warranty expense for the company during 2016.

To determine

To Journalize: Warranty payments for the company.

To determine

To journalize: Vacation benefit expense.

To determine

To journalize: employee bonus expense.

Expert Solution & Answer

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See solution

Answer 5

Chapter 11, Problem 11.22E

To determine

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

Vacation expense: Vacation expense is an estimated expense for the company which the company should pay to the employees as extra salary over the entire year. For example: If an employee works 49 weeks in a year, company should pay 3 weeks’ (52 weeks – 49 weeks) extra salary as a vacation expense.

Bonus: Bonus is an additional payment given by the employer to their employees with regular wages for their good performance.

To Journalize: Warranty expense for the company during 2016.

To determine

To Journalize: Warranty payments for the company.

To determine

To journalize: Vacation benefit expense.

To determine

To journalize: employee bonus expense.

Answer 6

Chapter 11, Problem 11.22E

To determine

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

Vacation expense: Vacation expense is an estimated expense for the company which the company should pay to the employees as extra salary over the entire year. For example: If an employee works 49 weeks in a year, company should pay 3 weeks’ (52 weeks – 49 weeks) extra salary as a vacation expense.

Bonus: Bonus is an additional payment given by the employer to their employees with regular wages for their good performance.

To Journalize: Warranty expense for the company during 2016.

Answer 7

Chapter 11, Problem 11.22E

To determine

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

Vacation expense: Vacation expense is an estimated expense for the company which the company should pay to the employees as extra salary over the entire year. For example: If an employee works 49 weeks in a year, company should pay 3 weeks’ (52 weeks – 49 weeks) extra salary as a vacation expense.

Bonus: Bonus is an additional payment given by the employer to their employees with regular wages for their good performance.

To Journalize: Warranty expense for the company during 2016.

Answer 8

To determine

To Journalize: Warranty payments for the company.

Answer 9

To determine

To Journalize: Warranty payments for the company.

Answer 10

To determine

To journalize: Vacation benefit expense.

Answer 11

To determine

To journalize: Vacation benefit expense.

Answer 12

To determine

To journalize: employee bonus expense.

Answer 13

To determine

To journalize: employee bonus expense.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 11 - Prob. 1QC Ch. 11 - On January 1, 2016, a business borrowed 18,000 on...Ch. 11 - A company sells 180,000 (selling price) of goods...Ch. 11 - Prob. 4QC Ch. 11 - Prob. 5QC Ch. 11 - Prob. 6QC Ch. 11 - Prob. 7QC Ch. 11 - Vega Company expects to pay a 4% bonus on net...Ch. 11 - Prob. 9QC Ch. 11 - Prob. 10QC

Solution Summary: The author explains that warranty is an agreement made by the company to provide guarantee against the defects in the products.

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To Journalize: Warranty payments for the company.

To journalize: Vacation benefit expense.

To journalize: employee bonus expense.

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