BA 511 CUSTOM CONNECT FOR FUND ACC PRINC
25th Edition
ISBN: 2818440044250
Author: Wild
Publisher: MCG
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Chapter 11, Problem 13E
To determine
Concept Introduction: Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability has to be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using past experience.
The effect of warranty transactions on the
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Keesha Company borrows $200,000 cash on November 1 of the current year by signing
a 90-day, 9%, $200,000 note.
Required:
1. On what date does this note mature?
(Use cells A2 to H6 from the given information to complete this question.)
On what date does this note mature?
Note Term (days)
90
$200,000
Issue Date
1-Nov
Year End
31-Dec
Rate Days in year
9%
360
2. & 3. What is the amount of interest expense in the current year and the following year from this note?
Interest expense in current year
Interest expense in following year
4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity.
!
Required information
[The following information applies to the questions displayed below.]
Claire Corporation is planning to issue bonds with a face value of $160,000 and a coupon rate of 8 percent. The bonds
mature in two years and pay interest quarterly every March 31, June 30, September 30, and December 31. All of the bonds
were sold on January 1 of this year. Claire uses the effective-interest amortization method and also uses a discount
account. Assume an annual market rate of interest of 12 percent.(FV of $1. PV of $1, FVA of $1, and PVA of $1)
Note: Use appropriate factor(s) from the tables provided.
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Journal entry worksheet
Note: Enter debits before credits.
Record the issuance of the bonds on January 1.
Date
January 01
Record entry
J
General Journal
Clear entry
c
Debit
Credit
View general journal
docs.google.com
Done
the sale.
2. Which of the following best
1 point
describes the accounting for
assurance-type warranty costs?
O a. Expensed when paid.
b. Expensed when warranty claims are
certain.
c. Expensed based on estimate in year
of sale.
d. Expensed when incurred.
Chapter 11 Solutions
BA 511 CUSTOM CONNECT FOR FUND ACC PRINC
Ch. 11 - Prob. 1QSCh. 11 - Prob. 2QSCh. 11 - Prob. 3QSCh. 11 - QS 11-3
Unearned revenue
C2
Ticketsales, Inc.,...Ch. 11 - Interest-bearing note transactions P1 On November...Ch. 11 - Prob. 6QSCh. 11 - Prob. 7QSCh. 11 - Prob. 8QSCh. 11 - Prob. 9QSCh. 11 - Prob. 10QS
Ch. 11 - Prob. 11QSCh. 11 - Prob. 12QSCh. 11 - Prob. 13QSCh. 11 - Prob. 14QSCh. 11 - Prob. 15QSCh. 11 - Prob. 16QSCh. 11 - Prob. 17QSCh. 11 - Prob. 18QSCh. 11 - Prob. 19QSCh. 11 - Prob. 20QSCh. 11 - Exercise 11-1
Classifying liabilities
C1
The...Ch. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Exercise 11-3 Accounting for note payable...Ch. 11 - Exercise 11-4 Interest-bearing notes payable with...Ch. 11 - Exercise 11-5 Computing payroll taxes P2 P3
BMX...Ch. 11 - Exercise 11-7 Payroll-related journal entries...Ch. 11 - Exercise 11-6 Payroll-related journal entries...Ch. 11 - Exercise 11-9 Computing payroll taxes P2 P3 Mest...Ch. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prob. 13ECh. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17ECh. 11 - Prob. 18ECh. 11 - Prob. 19ECh. 11 - Prob. 20ECh. 11 - Prob. 21ECh. 11 - Prob. 22ECh. 11 - Problem 11-1A Short-term notes payable...Ch. 11 - Problem 11-2A Entries for payroll transactions P2...Ch. 11 - Problem 11-3A Payroll expenses, withholdings, and...Ch. 11 - Prob. 4PSACh. 11 - Prob. 5PSACh. 11 - Prob. 6PSACh. 11 - Problem 11-1B Short-term notes payable...Ch. 11 - Problem 11-2B Entries for payroll transactions P2...Ch. 11 - Problem 11-3B Payroll expenses, withholdings, and...Ch. 11 - Prob. 4PSBCh. 11 - Prob. 5PSBCh. 11 - Prob. 6PSBCh. 11 - Review the February 26 and March 25 transactions...Ch. 11 - Bug-Off Exterminators provides pest control...Ch. 11 - Prob. 1GLPCh. 11 - Prob. 1AACh. 11 - Key figures for Apple and Google follow. Apple...Ch. 11 - Prob. 3AACh. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - Prob. 3DQCh. 11 - Prob. 4DQCh. 11 - Prob. 5DQCh. 11 - Prob. 6DQCh. 11 - Prob. 7DQCh. 11 - Prob. 8DQCh. 11 - Prob. 9DQCh. 11 - Prob. 10DQCh. 11 - Prob. 11DQCh. 11 - Prob. 12DQCh. 11 - BTN 11-3 Cameron Bly is a sales manager for an...Ch. 11 - Prob. 2BTNCh. 11 - Prob. 3BTNCh. 11 - Prob. 4BTNCh. 11 - Prob. 5BTN
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