During Year 1, Ward Company introduced a new product carrying a two-year warranty against defects, which is included in the selling price of the product. The estimated warranty costs are 2% of sales within thefirst 12 months following the sale and 4% in the second 12 months following the sale. Sales and actual warranty expenditures for the years ended December 31 of Year 1 and Year 2 follow.SalesYear 1 $1,560,000Actual WarrantyExpenditures$23,400Year 2 2,600,00078,000$4,160,000$101,400Requireda. Record the entries in Year 1 to (1) record actual cash warranty costs and (2) accrue for warranties at year-end.DateAccount Namea. Dec. 31 Year 1 Warranty ExpenseDr.Cr.0000Warranty LiabilityDec. 31 Year 1To record actual warranty costs.Warranty Liability00Cash00To accrue for warranty expense.b. At December 31 Year 1, what would Ward report as estimated warranty liability on its balance sheet? $ 0c. Record the entries in Year 2 to (1) record actual cash warranty costs and (2) accrue for warranties at year-end.DateAccount NameDr.Cr.Dec. 31 Year 2 Warranty Expense00Warranty Liability00To record actual warranty costs.Dec. 31 Year 2 Warranty Liability00Cash00To accrue for warranty expense.

The warranty expense is calculated on the basis of previous years' experiences. It is estimated at…

Account Name Required a. Record the entries in Year 1 to (1) record actual cash warranty costs and (2) accrue for warranties at year-end. Date a. Dec. 31 Year 1 Warranty Expense Dr. Cr. 0 0 Warranty Liability 0 0 To record actual warranty costs. Dec. 31 Year 1 Warranty Liability 0 0 Cash 0 0 To accrue for warranty expense. b. At December 31 Year 1, what would Ward report as estimated warranty liability on its balance sheet? $ 0 c. Record the entries in Year 2 to (1) record actual cash warranty costs and (2) accrue for warranties at year-end.

Account Name Required a. Record the entries in Year 1 to (1) record actual cash warranty costs and (2) accrue for warranties at year-end. Date a. Dec. 31 Year 1 Warranty Expense Dr. Cr. 0 0 Warranty Liability 0 0 To record actual warranty costs. Dec. 31 Year 1 Warranty Liability 0 0 Cash 0 0 To accrue for warranty expense. b. At December 31 Year 1, what would Ward report as estimated warranty liability on its balance sheet? $ 0 c. Record the entries in Year 2 to (1) record actual cash warranty costs and (2) accrue for warranties at year-end.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The company determines that the interest expense on a note payable for the period ending December 31 is $490. This amount is payable on January 1. Journalize these transactions for December 31 and January 1. If an amount box does not require an entry, leave it blank.
GLO701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Garcia Company. Year 1 Dec. 16 Accepted a $20, 400, 60-day, 12% note in granting Rita Griffin a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Griffin note. Year 2 Feb. 14 Received Griffin's payment of principal and interest on the note dated December 16. 2 Accepted a $9,00e, 6%, 90-day note in granting a time extension on the past-due account receivable from Wright Co. 17 Accepted a $7, 200, 30-day, 10% note in granting Wang Lee a time extension on her past-due account receivable. Apr. 16 Lee dishonored her note. 31 Wright Co. dishonored its note. Mar. May Aug. 7 Accepted a $22, eee, 98-day, 1e% note in granting a time extension on the past-due account receivable of Collins Co. Sep. Nov. 2 Received payment of principal plus interest from Gonzalez for the September 3 note. Nov. 5 Received payment of principal plus interest from…
2.) Complete the following: Invoice Date goods Date Received a.) Dec 25 b.) April 18 c.) July 9 Nov. 29 d.) April 28 Last day End of Terms of discount 1/10,n30 2/10, n30 EOM 3/10,n/30 ROG 2/10, n30 EOM credit period.
Subject - account Please help me. Thankyou.
a. Journalize the entry to record the issuance of the note on January 1. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. b. b. Journalize the entry to record the payment of the note at maturity, including interest. Assume a 360-day year. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Do not give answer in image formate
Determining amounts to be paid on invoices Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period: ό ό ύ τ ο a. b. d. e. a. S b. S 00000 C. $ d. $ Merchandise e. S Invoice Amount $17,400 11,500 7,600 3,700 2,400 Freight Paid by Seller $500 100 FOB destination, n/30 FOB shipping point, 2/10, n/30 FOB shipping point, 2/10, n/30 FOB shipping point, 2/10, n/30 FOB destination, 2/10, n/30 Customer Returns and Allowances $900 1,400 700 500
8 A lessor received a cash rental payment from a lesses at the end of the current period. The assel was leased at the beginning of the current period and was properly recorded as a sales-type Inase Which journal entry should the lessor use to record the payment? O Credit Cash; Debit Lease Liability: Credit Interest Expense O Debit Interest Revenue; Debit Lease Receivable; Credit Cash Debit Cash; Credit Interest Revenue; Credit Lease Receivable Debit Interest Expense; Credit Cash; Credit Lease Liability NEXT > BOOKMARK
Complete interest amounts and general journal 1-2 pleaee and thank you
Calculate the full payment required on the payment date that reduces the balance on the invoice to zero . assume that this is not a leap year.
Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period: نه ن ن ن ن a. b. C. C. d. e. a. $ b. $ 00000 d. $ Merchandise e. S Invoice Amount $18,200 9,100 5,800 2,600 3,600 Freight Paid by Seller $400 - 100 FOB destination, n/30 FOB shipping point, 2/10, n/30 FOB shipping point, 2/10, n/30 FOB shipping point, 1/10, n/30 FOB destination, 1/10, n/30 Customer Returns and Allowances $900 1,100 500 400
Details of Notes Receivable and Related Entries Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received the following notes: Interest Date Face Amount Rate Term 1. Аpr. 10 $69,000 4% 60 days 2. June 24 16,800 30 days 3. July 1 72,000 120 days 4. Oct. 31 72,000 60 days 54,000 60 days 5. Nov. 15 6. Dec. 27 108,000 30 days Required: Assume 360 days in a year. 1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number. (a) (ь) Note Due Date Interest Due at Maturity (1) (2) (3) (4) (5) (6) O o in o +