ACCOUNTING PRINCIPLES 122 5/16 >C<
17th Edition
ISBN: 9781323461471
Author: Horngren
Publisher: PEARSON C
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Textbook Question
Chapter 11, Problem P11.28APGA
Journalizing liability transactions
The following transactions of Oscar Landing occurred during 2016:
Apr. 30 Landing is party to a patent infringement lawsuit of $220,000. Landing's attorney is certain it is remote that Landing will lose this lawsuit.
Jun. 30 Estimated warranty expense at 2% of sales of $420,000.
Jul. 28 Warranty claims paid in the amount of $5,800.
Sep. 30 Landing is party to a lawsuit for copyright violation of $110,000 Landing's attorney advises that it is probable Landing will lose this lawsuit. The attorney estimates the loss at $110,000
Dec. 31 Landing estimated warranty expense on sales for the second half of the year of $460,000 at 2%.
Requirements
- Journalize required transactions, if any, in Landing’s general journal. Explanations are not required.
- What is the balance in Estimated Warranty Payable assuming a beginning balance of $0?
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Chapter 11 Solutions
ACCOUNTING PRINCIPLES 122 5/16 >C<
Ch. 11 - Prob. 1QCCh. 11 - On January 1, 2018, a business borrowed $18,000 on...Ch. 11 - Prob. 3QCCh. 11 - Prob. 4QCCh. 11 - Prob. 5QCCh. 11 - Prob. 6QCCh. 11 - Prob. 7QCCh. 11 - Prob. 8QCCh. 11 - Prob. 9QCCh. 11 - McDaniel and Associates reported the following...
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