Part b (b) Prepare 2025 entries for Bonita assuming that the warranties are not an integral part of the sale (a service - type warranty). Assume that of the sales total, $ 55,000 relates to sales of warranty contracts. Warranty costs incurred in 2025 were $21,000. Estimate revenues to be recognized on a straight-line basis. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)

Part b (b) Prepare 2025 entries for Bonita assuming that the warranties are not an integral part of the sale (a service - type warranty). Assume that of the sales total, $ 55,000 relates to sales of warranty contracts. Warranty costs incurred in 2025 were $21,000. Estimate revenues to be recognized on a straight-line basis. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 28E: On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First...

See similar textbooks

Similar questions

Interest-Bearing and Non-Interest-Bearing Notes On December 11, 2019, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign a 12,000,60-day note. Required: Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2019, and the customers repayment on February 9, 2020, assuming: 1. Interest of 12% was in addition to the face value of the note. 2. The note was issued as a 12,000 non-interest-bearing note with a present value of 11,765. The implicit interest rate on the note receivable was 12%. Assume a 360-day year. (Round to the nearest dollar.)
Prepare 2020 entries for Carla assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $53,000 relates to sales of warranty contracts.Warranty costs incurred in 2020 were $22,000. Estimate revenues to be recognized on a straight-line basis. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 5 decimal places, e.g. 1.54657 answers to O decimal places, e.g. 5,125. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
Early in 2020, Kingbird Equipment Company sold 600 Rollomatics at $5,400 each. During 2020, Kingbird spent $21,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All sales transactions are on a cash basis. (a) Your Answer Correct Answer (Used) Your answer is partially correct. Prepare 2020 entries for Kingbird. Assume that Kingbird estimates the total cost of servicing the warranties in the second year will be $31,000. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit At Sale cash 3240000 Sales Revenue 32 During 2020 Warranty Expense 21000 Unearned Warranty Revenue Dec. 31, 2020 Warranty Expense 31000
thanks
Answer this please. Accounting question. If the collection of the note receivable is not reasonably assured, what is the gross profit to be recognized by the entity for the year ended December 31, 2020 in relation to the initial franchise fee?A. 60,028 C. 56,009B. 54,236 D. 45,037
Required: 1. Prepare journal entries in connection with the warranty using the “expense as incurred” approach.2. Prepare journal entries in connection with the warranty using the “accrual” approach.
1)Suppose the company in the previous question offers a two-year extended warranty, which it sells, separate from the computer. In 2020, extended warranty sales totaled $ 20,000. During 2020 the company incurred $ 2,500 in costs related to the extended warranties. In the Statement of Situation of December 31, 2020, the company will recognize: a.Warranties payable for $ 17,500 b. $ 20,000 unearned warranty revenue c. Warranties payable for $ 2,500 d. Unearned warranty revenue of $ 17,500 2)A company offers two-year warranties at no additional cost on the computers it sells. In 2020, the company had computer sales of $ 200,000 and estimated that the cost of warranties for those computers would be $ 8,000. During 2020, the company incurred $ 1,800 in costs to honor the guarantees of the computers sold in 2020. In the Statement of Situation of December 31, 2020, the company will recognize guarantee debt in the amount of: a. $ 0. The remaining $ 6,200 corresponds to 2021. b. $ 6,200, since…
Riviera Interior Design had the following transactions for the year ended 30 June 2020: This business is registered for GST 1 July 2019 Created a provision for warranties for $7,600. None had previously existed. 1 April 2020 Agreed to accept a 90-day (due date fixed) bill of exchange from CBD Wholesalers in relation to an overdue account payable of $8,700, together with interest at 5% per year. 30 May 2020 Riviera Interior Design pays the bill payable to Zed Manufacturers. 14 June 2020 A successful claim was made by a customer for a fault in an antique table they had previously purchased. The antique table was under warranty. The cost to rectify the fault was $627 including GST which was paid in cash. The payroll and payroll deductions for June 2020 were as follows: Gross wages $63,120 30 June 2020 PAYG tax $18,936 Superannuation contributions Medical insurance $4,080 Required: Prepare general journal entries to record the above transactions. Narrations are not required. $5,996
In the preceding problem, what is the carrying amount of the note payable on December 31, 2020? In the preceding problem, what is the equity of the assignor in assigned accounts on December 31, 2020?
7
Required Information [The following information applies to the questions displayed below.] Agrico Incorporated accepted a 10-month, 11% (annual rate), $5,650 note from one of its customers on July 15, 2022; Interest is payable with the principal at maturity. b-2. Prepare the journal entry to record collection of the note and Interest at maturity. Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account fleld. Do not round your Intermediate calculation. Round your answers to 2 decimal places. View transaction list View journal entry worksheet No A Event 1 Cash Interest payable Interest revenue Note receivable General Journal Debit Credit Ⓒ
Cardinal Company, a dealer in lawn equipment, accepted a 6 month note receivable from a customer on September 1, 2020 that will come due on March 1, 2021. If Cardinal Company's fiscal year ends on December 31, 2020, the interest revenue earned would be recognized from the note receivable on: (Remember The Revenue Recognition Principle) A. on December 31, 2020 only B. on September 1, 2020 C. on March 1, 2021 only D. on December 31, 2020 and March 1, 2021