introduced a new implant that carries a five-year warranty against manufacturer's defects. Based on industry experience with similar product introductions, warranty costs are expected to approximate 2% of sales. Sales were $21 million and actual warranty expenditures were $31,750 for the first year of selling the product. Complete the following T-account to determine the amount (if any) Das should report as a liability at the end of the year. Note: Enter your answers in whole dollars. Warranty Liability Beginning Balance Ending Balance Debit Credit

introduced a new implant that carries a five-year warranty against manufacturer's defects. Based on industry experience with similar product introductions, warranty costs are expected to approximate 2% of sales. Sales were $21 million and actual warranty expenditures were $31,750 for the first year of selling the product. Complete the following T-account to determine the amount (if any) Das should report as a liability at the end of the year. Note: Enter your answers in whole dollars. Warranty Liability Beginning Balance Ending Balance Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At the beginning of the year, your company borrows $33,600 by signing a six-year promissory note that states an annual interest rate of 9% plus principal repayments of $5,600 each year. Interest is paid at the end of the second and fourth quarters, whereas principal payments are due at the end of each year. How does this new promissory note affect the current and non-current liability amounts reported on the classified balance sheet prepared at the end of the first quarter? 10 Multiple Choice Increase current llabilities by $6,356.00; increase non-current llablities by $33,600 Increase current liabilities by $3,024; increase non-current liabilities by $33,600 Increase current liabilities by $6,356.00; Increase non-current liabilities by $28,000 Increase current liabilities by $756.00, increase non-current labilities by $33,600
← Jade Larson Antiques owes $20,000 on a truck purchased for use in the business. Assume the company makes timely principal payments of $5,000 each year at December 31 plus interest at 8%. Which of the following is true? O A. Just before the last payment is made, $5,000 will appear as a long-term liability on the balance sheet. OB. After the first payment is made, $5,000 would be shown as the current portion due on the long-term note. OC. After the first payment is made, the company owes $15,000 plus three years' interest. O D. After the first payment, $15,000 would be shown as a long-term liability.
At the beginning of the year, Laurier Inc. had a balance in its warranty liability account of $ 50000. During the year Laurier Inc. paid warranty costs of $ 62000. At the end of the year, Laurier Inc. estimated that its future warranty liability was $ 60000. How much is Laurier Inc.'s warranty expense for the year? Your Answer:
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What is the revenue earned from award credits for 2022? *see attached a. P 0b. P 28,000c. P 36,000d. P 116,000
prepare a three-year (monthly) amortization schedule to classify the notes payable into its current and long-term amounts. See October 1, 2020 transaction for details of loan. October 1 - Bought office equipment for $15,000 and signed a three-year promissory note with a local bank. The annual interest rate is 5%, with monthly payments of $449.56 beginning on November 1.
1. What amount of warranty expense should be shown on Crassula's income statement for the year ended December 31, 2021? 2. What amount of warranty liability should be shown on Crassula's statement of financial position as of December 31, 2021?
The Price is Right manufactures electronic systems. The company provides a one-year warranty for all products sold. The company estimates that the warranty cost is $200 per unit sold and reported a liability for estimated warranty costs $6.5 million at the beginning of this year. If during the current year, the company sold 50,000 units for a total of $243 million and paid warranty claims of $7,500,000 on current and prior year sales, what amount of liability would the company report on its statement of financial position at the end of the current year? Select one: a. $2,500,000. O b. $9,000,000. O c. $10,000,000. O d. $3,500,000.
E. An entity sells washing machines that carry a three-year warranty against manufacturer's defects. Based on the entity's experience, warranty costs are estimated at P300 per machine. During the year, the entity sold 2,400 washing machines and paid warranty costs of P170,000. What amount should be reported as estimated warranty liability at year-end?
Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Hitzu Company sold a copier (that costs $6,500) for $13,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 5% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $93 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copier. Exercise 9-13 (Algo) Financlal statement impact of warranty transactions LO P4 Analyze each of the following transactions: (a) the copier's sale; (b) the adjustment to recognize the warranty expense on December 31 of Year 1; and (c) the repairs that occur on January 5 of Year 2. Show each transaction's effect on the accounting equation-specifically, identify the…
In 2018, Bare company began selling a new calculator that carried a two-year warranty against defects. Bare projected the estimated warranty (as a percent of sales) as follows: First year of warranty 4% Second year of warranty 10% Sales and actual warranty repairs were: 2018 2019 Sales 5,000,000 9,000,000 Actual warranty repairs 200,000 560,000 How much is the amount of estimated liability for warranties on December 31, 2018?