93. Martok Company sells personal computers for $2.300 each. The price includes a two-year warranty. During 2015, the company sells 400 computers. On the basis of past experience, the warranty costs are estimated to be $250 per computer. The actual warranty costs paid by Martok during 2015 were $65,000. Prepare general journal entries to record the estimated warranty expense and the warranty payments during 2015.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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93. Martok Company sells personal computers for $2.300 each. The price includes a two-year
warranty. During 2015, the company sells 400 computers. On the basis of past experience, the
warranty costs are estimated to be $250 per computer, The actual warranty costs paid by Martok
during 2015 were $65,000. Prepare general journal entries to record the estimated warranty
expense and the warranty payments during 2015.
0000
$85,000
Interest of 10% based upon their average
capital balances which are:
Remainder shared in this ratio
$65,000
$50,000
2.
1
(a) Prepare a detailed schedule to show how the profit would be allocated among the three
partners.
(b) Assume that the revenue and expense accounts have been closed. Prepare the remaining
closing entries.
Transcribed Image Text:0000 000 93. Martok Company sells personal computers for $2.300 each. The price includes a two-year warranty. During 2015, the company sells 400 computers. On the basis of past experience, the warranty costs are estimated to be $250 per computer, The actual warranty costs paid by Martok during 2015 were $65,000. Prepare general journal entries to record the estimated warranty expense and the warranty payments during 2015. 0000 $85,000 Interest of 10% based upon their average capital balances which are: Remainder shared in this ratio $65,000 $50,000 2. 1 (a) Prepare a detailed schedule to show how the profit would be allocated among the three partners. (b) Assume that the revenue and expense accounts have been closed. Prepare the remaining closing entries.
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