Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Chapter 7, Problem 7.3ME
Mini-Exercise 7.3
LO 5
Other accrued liabilities-warranties The balance of the Estimated Warranty Liability account was $25,000 on January 1, 2016, and $34,400 on December 31, 2016. Based on an analysis of warranty claims during the past several years, this year’s warranty provision was established at 1.5% of sales, and sales during the year were $2,600,000.
Required:
a. What amount of warranty expense will appear on the income statement for the year ended December 31, 2016?
b. What were the actual costs of servicing products under warranty during the year?
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QS 7-14 (Algo) Note receivable interest and maturity LO P4
On December 1, Daw Company accepts a $26,000, 45-day, 6% note from a customer.
(1) Prepare the year-end adjusting entry to record accrued interest revenue on December 31.
(2) Prepare the entry required on the note's maturity date assuming it is honored.
Note: Use 360 days a year.
Exercise 7-5 (Algo) Notes payable—discount basis LO 2
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[The following information applies to the questions displayed below.] On April 15, 2019, Powell Inc. obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $255,400. The interest rate charged by the bank was 5.00%. The bank made the loan on a discount basis.
Exercise 7-5 (Algo) Part c
c. What is the amount of the current liability related to this loan to be shown in the June 30, 2019, balance sheet?
Chapter 7 Solutions
Accounting: What the Numbers Mean
Ch. 7 - Prob. 7.1MECh. 7 - Mini-Exercise 7.2 LO 4 Other accrued...Ch. 7 - Mini-Exercise 7.3 LO 5 Other accrued...Ch. 7 - Prob. 7.4MECh. 7 - Exercise 7.5 LO 2 Notes payable-discount basis On...Ch. 7 - Prob. 7.6ECh. 7 - Exercise 7.7 LO 4 Other accrued...Ch. 7 - Exercise 7.8 LO 5 Other accrued liabilities-real...Ch. 7 - Exercise 7.9 LO 5 Other accrued...Ch. 7 - Exercise 7.10 LO 5 Other accrued...
Ch. 7 - Exercise 7.11 LO 3 Unearned revenues-customer...Ch. 7 - Exercise 7.12 LO 3 Unearned revenues-ticket sales...Ch. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.15ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.17ECh. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.20ECh. 7 - Exercise 7.21 LO 4. 5, 8 Transaction...Ch. 7 - Prob. 7.22ECh. 7 - Prob. 7.23ECh. 7 - Prob. 7.24ECh. 7 - Prob. 7.25PCh. 7 - Problem 7.26 LO 3 Unearned revenues-subscription...Ch. 7 - Prob. 7.27PCh. 7 - Prob. 7.28PCh. 7 - Prob. 7.29PCh. 7 - Prob. 7.30PCh. 7 - Prob. 7.31PCh. 7 - Prob. 7.32PCh. 7 - Prob. 7.33CCh. 7 - Prob. 7.34CCh. 7 - Prob. 7.35C
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- QS 9-15 (Algo) Note receivable interest and maturity LO P4 On December 1, Daw Company accepts a $44,000, 45-day, 12% note from a customer.(1) Prepare the year-end adjusting entry to record accrued interest revenue on December 31.(2) Prepare the entry required on the note's maturity date assuming it is honored. (Use 360 days a year.)arrow_forwardExercise 4-15 (Algo) Notes receivable—interest accrual and collection LO 6, 7 On April 1, 2019, Tabor Co. received an $5,400 note from a customer in settlement of an $5,400 account receivable from that customer. The note bore interest at the rate of 12% per annum, and the note plus interest was payable March 31, 2020.Required:Use the horizontal model to show the effects (+ for addition and − for subtraction) of each of these transactions and adjustments: Receipt of the note on April 1, 2019. The accrual of interest at December 31, 2019. The collection of the note and interest on March 31, 2020.arrow_forwardExercise 11-4 (Algo) Accounting for note payable LO P1 Sylvestor Systems borrows $126,000 cash on May 15 by signing a 90-day, 5%, $126,000 note. 1. On what date does this note mature?2-a. Prepare the entry to record issuance of the note.2-b. First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your entry to record payment of the note at maturity.arrow_forward
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