Homework Help is Here – Start Your Trial Now!
Business
Accounting
Accounting Questions 10 Marks Question: 1 Outback Camera Co. was organized to sell a single product that carries a 60-day warranty against defects. Engineering estimates indicate that 5% of the units sold will prove defective and require an average repair cost of $40 per unit. During Outback's first month of operations, total sales were 400 units; by the end of the month, 6 defective units had been repaired. The liability for product warranties at month-end should be $ a. $370 b. $930 c. $680 d. $445 Question: 2 Adam Inc. had assets of $255,000 and liabilities of $127,000 at the beginning of the year. During the year, revenues were $143,000 and expenses were $91,000. Also, during the year the business paid the owners a dividend of $5,000 and assets increased by $21,000. What were Adam's total liabilities at the end of the year? a. $101,000 b. $145,000 c. $195,000 d. $246,000

Accounting Questions 10 Marks Question: 1 Outback Camera Co. was organized to sell a single product that carries a 60-day warranty against defects. Engineering estimates indicate that 5% of the units sold will prove defective and require an average repair cost of $40 per unit. During Outback's first month of operations, total sales were 400 units; by the end of the month, 6 defective units had been repaired. The liability for product warranties at month-end should be $ a. $370 b. $930 c. $680 d. $445 Question: 2 Adam Inc. had assets of $255,000 and liabilities of $127,000 at the beginning of the year. During the year, revenues were $143,000 and expenses were $91,000. Also, during the year the business paid the owners a dividend of $5,000 and assets increased by $21,000. What were Adam's total liabilities at the end of the year? a. $101,000 b. $145,000 c. $195,000 d. $246,000

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter15: Managing Short-term Assets
Section: Chapter Questions
Problem 9PROB
See similar textbooks
icon
Related questions
Question

Provide answer

Accounting Questions 10 Marks Question: 1 Outback Camera Co. was organized to sell a single product that carries a 60-day warranty against defects. Engineering estimates indicate that 5% of the units sold will prove defective and require an average repair cost of $40 per unit. During Outback's first month of operations, total sales were 400 units; by the end of the month, 6 defective units had been repaired. The liability for product warranties at month-end should be $ a. $370 b. $930 c. $680 d. $445 Question: 2 Adam Inc. had assets of $255,000 and liabilities of $127,000 at the beginning of the year. During the year, revenues were $143,000 and expenses were $91,000. Also, during the year the business paid the owners a dividend of $5,000 and assets increased by $21,000. What were Adam's total liabilities at the end of the year? a. $101,000 b. $145,000 c. $195,000 d. $246,000
Transcribed Image Text:Accounting Questions 10 Marks Question: 1 Outback Camera Co. was organized to sell a single product that carries a 60-day warranty against defects. Engineering estimates indicate that 5% of the units sold will prove defective and require an average repair cost of $40 per unit. During Outback's first month of operations, total sales were 400 units; by the end of the month, 6 defective units had been repaired. The liability for product warranties at month-end should be $ a. $370 b. $930 c. $680 d. $445 Question: 2 Adam Inc. had assets of $255,000 and liabilities of $127,000 at the beginning of the year. During the year, revenues were $143,000 and expenses were $91,000. Also, during the year the business paid the owners a dividend of $5,000 and assets increased by $21,000. What were Adam's total liabilities at the end of the year? a. $101,000 b. $145,000 c. $195,000 d. $246,000
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CFIN
EBK CFIN
Finance
ISBN:
9781337671743
Author:
BESLEY
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS