replacement of parts and labor. The estimated warranty cost, based on past Musical instrument and sound equipment are sold in a one-year warranty for Wade's Music Emporium carries a wide variety of music promotion techniques - warranties and premiums - to attract customers. experience, is 4% of sales. music. Customers receive a The premium is offered on the recorded and coupon for two pesos spent on recorded music or sheet music. Customere exchange 200 coupons and P20 for an AM/FM radio. Wade pays P34 for e radio and estimates that 90% of the coupons given to customers will be redeemed. sheet may Wade total sales for 2021 were P2,000,000 from recorded music and sheet music. Replacement parts and labor for warranty work totaled P164,000 during 2021. A total of 6,500 AM/FM radio used in the premium program was purchased during the year and there were 1,200,000 coupons redeemed in 2021. agas The accrual method is used by Wade to account for the warranty and premium costs for financial reporting purposes. The balance in the accounts related to warranties and premiums on January 1, 2021, was shown below: Inventory of Premium AM/FM radio Estimated Pre rolintu P 39,950 44,800 136,000 um Claims Outstanding Estimated Liability from Warranties Also, on December 31, 2021, the estimated liability from warranties shows P212,000 balance. Questions: (Please assume that the selling price of the recorded music and sheet music is an even number) Based on the above and the result of your audit, determine the amounts that will be shown on the 2021 financial statements for the following: win deles from musical instrument and sound reproduction equipment P6,000,000 b. P5,400,000 c. P6,400,000 d. P5,300,000 a. 2. Warranty expense P240,000 b. P216,000 ATACTES c. P256,000 d. P212,000 a. 3. Premium expense P 75,600 b. P108,000 c. P63,000 d. P126,000 a.
replacement of parts and labor. The estimated warranty cost, based on past Musical instrument and sound equipment are sold in a one-year warranty for Wade's Music Emporium carries a wide variety of music promotion techniques - warranties and premiums - to attract customers. experience, is 4% of sales. music. Customers receive a The premium is offered on the recorded and coupon for two pesos spent on recorded music or sheet music. Customere exchange 200 coupons and P20 for an AM/FM radio. Wade pays P34 for e radio and estimates that 90% of the coupons given to customers will be redeemed. sheet may Wade total sales for 2021 were P2,000,000 from recorded music and sheet music. Replacement parts and labor for warranty work totaled P164,000 during 2021. A total of 6,500 AM/FM radio used in the premium program was purchased during the year and there were 1,200,000 coupons redeemed in 2021. agas The accrual method is used by Wade to account for the warranty and premium costs for financial reporting purposes. The balance in the accounts related to warranties and premiums on January 1, 2021, was shown below: Inventory of Premium AM/FM radio Estimated Pre rolintu P 39,950 44,800 136,000 um Claims Outstanding Estimated Liability from Warranties Also, on December 31, 2021, the estimated liability from warranties shows P212,000 balance. Questions: (Please assume that the selling price of the recorded music and sheet music is an even number) Based on the above and the result of your audit, determine the amounts that will be shown on the 2021 financial statements for the following: win deles from musical instrument and sound reproduction equipment P6,000,000 b. P5,400,000 c. P6,400,000 d. P5,300,000 a. 2. Warranty expense P240,000 b. P216,000 ATACTES c. P256,000 d. P212,000 a. 3. Premium expense P 75,600 b. P108,000 c. P63,000 d. P126,000 a.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Don't answer 1 and 2. Answer 3,4,5 only. Show the solutions please. Thankyou
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4. Inventory of AM/FM radio
a. P158,950
b. P77,350
Prbum word dP0loinolsd bns auno
c. P39,950
d. P56,950
000,81M b
5. Estimated liability for premiums
lo unod s ynin
X bas aunod
Pof
a. P86,800
b. P65,800
c. P36,400
d. P23,800
Taunod bii ei
000 S
Transcribed Image Text:The premium is offered on the recorded and sheet music. Customers receive a
replacement of parts and labor. The estimated warranty cost, based on past
Wade's Music Emporium carries a wide variety of music promotion techniques .
coupon for two pesos spent on recorded music or sheet music. Customers may
Musical instrument and sound equipment are sold in a one-year warranty for
PROBLEM 26-31 Warranty and Premiums
warranties and premiums - to attract customers.
|
00,000.1
experience, is 4% of sales.
1blowdi
the
coupon for two pesos spent on recorded music or sheet music. Customeraa
exchange 200 coupons and P20 for an AM/FM radio. Wade pays P34 for eod
radio and estimates that 90% of the coupons given to customers will be
redeemed.
Wade total sales for 2021 were P2,000,000 from recorded music and sheet
music. Replacement parts and labor for warranty work totaled P164,000 during
2021. A total of 6,500 AM/FM radio used in the premium program was
purchased during the year and there were 1,200,000 coupons redeemed in
2021.
vllstn
The accrual method is used by Wade
costs for financial reporting purposes. The balance in the accounts related to
warranties and premiums on January 1, 2021, was shown below:
account for the warranty and premium
Jade to
Inventory of Premium AM/FM radio
Estimated Premium Claims Outstanding od s 44,800
Estimated Liability from Warranties
stolintu P 39,950
136,000
Also, on December 31, 2021, the estimated liability from warranties shows
P212,000 balance.
Questions: (Please assume that the selling price of the recorded music and
sheet music is an even number)
Based on the above and the result of your audit, determine the amounts that
will be shown on the 2021 financial statements for the following:
1 Sales from musical instrument and sound reproduction equipment
P6,000,000
b. P5,400,000
c. P6,400,000
d. P5,300,000
a.
boen
2. Warranty expense
P240,000
b. P216,000
ATACTES
c. P256,000
d. P212,000
a.
Premium expense
P 75,600
b. P108,000
3.
c. P63,000
d. P126,000
a.
1091
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