21, ABC Company provided 2,000 such warranty contracts at an average price of P810 each. Related to these contracts, the company spent P200,000 servicing the contracts during the current year and expects to spend P600,00 more
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ABC Company provides extended service contracts on equipment sold through major retailers. The standard contract is for three years. During 2021, ABC Company provided 2,000 such warranty contracts at an average price of P810 each. Related to these contracts, the company spent P200,000 servicing the contracts during the current year and expects to spend P600,00 more in the future.
The net profit for 2021 related to the extended service contract is?
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- ABC Company provides extended service contracts on equipment sold through major retailers. The standard contract is for three years. During 2021, ABC Company provided 2,000 such warranty contracts at an average price of P810 each. Related to these contracts, the company spent P200,000 servicing the contracts during the current year and expects to spend P600,00 more in the future. The amount of liability included in the December 31, 2021 balance sheet is?Zoro Company enters into a contract to sell Product A and Product B on July 1, 2020 for an upfront cash payment of P250,000. Product A will be delivered at the end of the year, and Product B will be delivered the following year. Zoro Company sells Product A for P80,000 and Product B for P240,000. 1. How many performance obligations are there in the contract? 2.what is the transaction price? 3.how much is revenue to be recognized in 2020? 4. how much is revenue to be recognized in 2021?TEN Company provides extended service contracts on equipment sold through major retailers. The standard contract is for three years. During 2021, TEN Company provided 2,000 such warranty contracts at an average price of P810 each. Related to these contracts, the company spent P200,000 servicing the contracts during the current year and expects to spend P600,00 more in the future. The amount of liability included in the December 31, 2021 balance sheet is 820,000 1,420,000 600,000 1,080,000
- ABC Company provides extended service contracts on equipment sold through major retailers. The standard contract is for three years. During 2021, ABC Company provided 2,000 such warranty contracts at an average price of P810 each. Related to these contracts, the company spent P200,000 servicing the contracts during the current year and expects to spend P600,00 more in the future. The amount of liability included in the December 31, 2021 balance sheet is Group of answer choices A. 820,000 B. 1,420,000 C. 1,080,000 D. 600,000Berlin Corp. reported the following data for 2021: Total net sales made to customers were P2,000,000 in cash. Goods purchased for sale totalled P1,200,000 in cash. Beginning and ending inventory of goods for sale, respectively, were P200,000 and P300,000. 1-year advanced rent of P30,000 to apply for 2020 was received from a sublease contract. P40,000 total interest income from customers promissory note earned P30,000 of this was collected. Unrealized foreign exchange gains from foreign currency receivable totaled P60,000. Using cash basis, compute the total income subject to income tax. P990,000 P750,000 P960,000 P690,000 ADD EXPLANATION THANKSAt the beginning of 2021, Angel Corporation began offering a 1-year warranty on its products. The warranty program was expected to cost Angel 4% of net sales. Net sales made under warranty in 2021 were $260 million. Five percent of the units sold were returned in 2021 and repaired or replaced at a cost of $9.0 million. The amount of warranty expense in Angel's 2021 income statement is:
- Everdeen Company sells computers for P20,000 eachand also gives each customer a 3-year warranty that requires the company to perform periodic servicesand to replace defective parts. During 2021, the company sold 5—computers. Based on experience, the company has estimated the total 3-year warranty costs as P120 for parts and P150 for labor. In 2021, Everdeen Company incurred actual warranty costs relative to 2021 computer sales of P5,400 for parts and P12,600 for labor. 1. The amount reported as warranty expense in 2021 is2. The amount reported under Estimated warranty obligation isCompany AAA borrowed P1,000,000 on July 1, 2021 and issued a 9% one-year note payable every after three months starting September 30, 2021. The quarterly payments were P264,200 inclusive of interest. If Company AAA paid the required quarterly payments when due, what is the carrying value of the note payable on December 31, 2021? O P528,400 O P522,500 O P511,162 O P488,156During 2020, Buenas 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. Sales and actual warranty expenditures for the years ended December 31, 2020 and 2021 are as follows: Sales Actual Expenditures P5,000,000 P150,000 6,000,000 550,000 At December 31, 2021, what would be reported as estimated warranty liability? a. P360,000 b. P400,000 c. P240,000 d. P50,000
- On September 1, 2021, Zara Company issued a 6-month note to supplier amounting to P300,000, 12% interest per annum. Also there was an unpaid and unrecorded salaries at the end of the year amounting to P25,000. The transaction will require?Careful Company sells goods that cost P600,000 to a customer for P800,000 on December 20, 2021. The sales price includes an installation fee, which is valued at P80,000. The fair value of the goods is P740,000. The installation is considered a separate performance obligation and is expected to take 3 months to complete. *How many performance obligations are there in the contract? *How much is the revenue to be recognized in 2021 and 2022?Perry Company sells 3,000 units of its product for $ 500 each in 2021. The selling price includes a one-year warranty on parts. It is expected that 2% of the units will be defective and that repair costs will average $50 per unit. In 2021, warranty contracts are honoured on 50 units for a total cost of $ 2,500. Perry Company's balance sheet reported blank as Estimated Warranty Liability on December 31, 2021.