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PROBLEM 26-32 Warranty, Premiums and Bonus You have been provided with the following data in connection with your audit of Bosh Company for the year ended December 31, 2021, its first year of operations: Warranty expense Premium expense Net Income P 85,000 270,000 1,935,000 leedfidg Additional information: Bosh Co. sells two products-washing machines and ovens. The washing machines carry a three-year warranty against manufacturer's defects. Based on the reliable estimate, warranty costs are estimated at P150 per machine. During 2021, Bosh Co. sold 1,200 washing machines and paid warranty costs of P85,000 which was charged to warranty expense. barebtaog lo Premium is offered on the oven. Customers receive a coupon for each peso spent on the oven. Customers may exchange 400 coupons and P20 for t-shirt. Bosh pays P45 for each t-shirt and estimates that 60% of the coupons given to customers will be redeemed. Total Sales for the oven amounted to P1,200,000. A total of 6,000 t-shirts used in the premium program were purchased during the year and there were 500,000 coupons redeemed during the current year. Premium expense of P270,000 was charged by the company when it purchased the 6,000 t-shirts. mlletzni lanas-imse .000,0 Questions: Based on the above data, determine the following: 1 Estimated Warranty Payable, December 31, 2021 a. P95,000 b. P180,000 omoɔnl iner bomeenU c. P85,000 d. P265,000 29 abgabivih dac 2. Estimated Premiums Payable, December 31, 2021 a. P45,000 b. P31,250 c. P13,750 led d. P76,250 ed ni da 3. Adjusted net income during 2021 a. P2,000,000 b. P1,990,000 c. P2,065,000 d. P2,085,000 ni de 000.0

PROBLEM 26-32 Warranty, Premiums and Bonus You have been provided with the following data in connection with your audit of Bosh Company for the year ended December 31, 2021, its first year of operations: Warranty expense Premium expense Net Income P 85,000 270,000 1,935,000 leedfidg Additional information: Bosh Co. sells two products-washing machines and ovens. The washing machines carry a three-year warranty against manufacturer's defects. Based on the reliable estimate, warranty costs are estimated at P150 per machine. During 2021, Bosh Co. sold 1,200 washing machines and paid warranty costs of P85,000 which was charged to warranty expense. barebtaog lo Premium is offered on the oven. Customers receive a coupon for each peso spent on the oven. Customers may exchange 400 coupons and P20 for t-shirt. Bosh pays P45 for each t-shirt and estimates that 60% of the coupons given to customers will be redeemed. Total Sales for the oven amounted to P1,200,000. A total of 6,000 t-shirts used in the premium program were purchased during the year and there were 500,000 coupons redeemed during the current year. Premium expense of P270,000 was charged by the company when it purchased the 6,000 t-shirts. mlletzni lanas-imse .000,0 Questions: Based on the above data, determine the following: 1 Estimated Warranty Payable, December 31, 2021 a. P95,000 b. P180,000 omoɔnl iner bomeenU c. P85,000 d. P265,000 29 abgabivih dac 2. Estimated Premiums Payable, December 31, 2021 a. P45,000 b. P31,250 c. P13,750 led d. P76,250 ed ni da 3. Adjusted net income during 2021 a. P2,000,000 b. P1,990,000 c. P2,065,000 d. P2,085,000 ni de 000.0

FINANCIAL ACCOUNTING
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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4. a. P158,950 b. P77,350 c. P39,950 d. P56,950 000E1 5. Estimated liability for premiums a. P86,800 b. P65,800 ques. C. P36,400 d. P23,800 adi er re.0AS 000 PROBLEM 26-32 Warranty, Premiums and Bonus Vou have been provided with the following data in connection with your audit of Bosh Company for the year ended December 31, 2021, its first year of a past eive a operations: P 85,000 270,000 s may r each ill be Warranty expense Premium expense Net Income daleedfid 1,935,000 Additional information: Bosh Co. sells two products-washing machines and ovens. The washing machines carry a three-year warranty against manufacturer's defects. Based on the reliable estimate, warranty costs are estimated at P150 per machine. During 2021, Bosh Co. sold 1,200 washing machines and paid warranty costs of P85,000 which was charged to warranty expense. sheet during n was ned in Premium is offered on the oven. Customers receive a coupon for each peso emiun ted to spent on the oven. Customers may exchange 400 coupons and P20 for t-shirt. Bosh pays P45 for each t-shirt and estimates that 60% of the coupons given to customers will be redeemed. Total Sales for the oven amounted to P1,200,000. A total of 6,000 t-shirts used in the premium program were purchased during the year and there were 500,000 coupons redeemed during the current year. Premium expense of P270,000 was charged by the company when it purchased ideysq zbnod Iere .000,04 the 6,000 t-shirts. s-im shows Questions: Based on the above data, determine the following: L Estimated Warranty Payable, December 31, 2021 c. P85,000 d. P265,000 279moja monl 29onsvbA omoni iner bemeenU sic and P95,000 b. P180,000 a. ts that Raldsysg a9 amgal 2. Estimated Premiums Payable, December 31, 2021 a. P45,000 b. P31,250 our c. P13,750 led d. P76,250 M-led ai da 3. Adjusted net income during 2021 a. P2,000,000 b. P1,990,000 00 c. P2,065,000 d. P2,085,000 ad ni de 量
Transcribed Image Text:4. a. P158,950 b. P77,350 c. P39,950 d. P56,950 000E1 5. Estimated liability for premiums a. P86,800 b. P65,800 ques. C. P36,400 d. P23,800 adi er re.0AS 000 PROBLEM 26-32 Warranty, Premiums and Bonus Vou have been provided with the following data in connection with your audit of Bosh Company for the year ended December 31, 2021, its first year of a past eive a operations: P 85,000 270,000 s may r each ill be Warranty expense Premium expense Net Income daleedfid 1,935,000 Additional information: Bosh Co. sells two products-washing machines and ovens. The washing machines carry a three-year warranty against manufacturer's defects. Based on the reliable estimate, warranty costs are estimated at P150 per machine. During 2021, Bosh Co. sold 1,200 washing machines and paid warranty costs of P85,000 which was charged to warranty expense. sheet during n was ned in Premium is offered on the oven. Customers receive a coupon for each peso emiun ted to spent on the oven. Customers may exchange 400 coupons and P20 for t-shirt. Bosh pays P45 for each t-shirt and estimates that 60% of the coupons given to customers will be redeemed. Total Sales for the oven amounted to P1,200,000. A total of 6,000 t-shirts used in the premium program were purchased during the year and there were 500,000 coupons redeemed during the current year. Premium expense of P270,000 was charged by the company when it purchased ideysq zbnod Iere .000,04 the 6,000 t-shirts. s-im shows Questions: Based on the above data, determine the following: L Estimated Warranty Payable, December 31, 2021 c. P85,000 d. P265,000 279moja monl 29onsvbA omoni iner bemeenU sic and P95,000 b. P180,000 a. ts that Raldsysg a9 amgal 2. Estimated Premiums Payable, December 31, 2021 a. P45,000 b. P31,250 our c. P13,750 led d. P76,250 M-led ai da 3. Adjusted net income during 2021 a. P2,000,000 b. P1,990,000 00 c. P2,065,000 d. P2,085,000 ad ni de 量
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