5-a. Compute the extended warranty revenue recognized during 2017 and 2018. (Enter your answers in millions of dollars.)Extended Warranty revenueView transaction list5-b. Prepare the journal entry to record the revenue recognized in 2018. (If no entry is required for a transaction/event, select "Nojournal entry required" in the first account field. Enter your answers in millions of dollars.)No120182017TransactionAView journal entry worksheetGeneral JournalExtended warranty deferred revenueExtended warranty revenueDebitCreditⒸ Selected information related to warranties provided by IBM follows (in millions of U.S. dollars):Net revenuesStandard warranty liability, end of yearCharges incurred during the yearExtended warranty deferred revenue, end of yearRevenue deferred for new extended warranty contracts201820172016$81,591 $81,139 $81,919158163573260192205606307196204571303

Selected information related to warranties provided by IBM follows (in millions of U.S. dollars): Net revenues Standard warranty liability, end of year Charges incurred during the year Extended warranty deferred revenue, end of year Revenue deferred for new extended warranty contracts 2018 2017 2016 $81,591 $81,139 $81,919 158 163 573 260 192 205 606 307 196 204 571 303

Selected information related to warranties provided by IBM follows (in millions of U.S. dollars): Net revenues Standard warranty liability, end of year Charges incurred during the year Extended warranty deferred revenue, end of year Revenue deferred for new extended warranty contracts 2018 2017 2016 $81,591 $81,139 $81,919 158 163 573 260 192 205 606 307 196 204 571 303

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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ces The following selected transactions relate to contingencies of Classical Tool Makers, Incorporated, which began operations in July 2024. Classical's fiscal year ends on December 31. Financial statements are issued in April 2025. 1. Classical's products carry a one-year warranty against manufacturer's defects. Based on previous experience, warranty costs are expected to approximate 4% of sales. Sales were $2 million (all credit) for 2024. Actual warranty expenditures were $30,800 and were recorded as warranty expense when incurred. 2. Although no customer accounts have been shown to be uncollectible, Classical estimates that 2% of credit sales will eventually prove uncollectible. 3. In December 2024, the state of Tennessee filed suit against Classical, seeking penalties for violations of clean air laws. On January 23, 2025, Classical reached a settlement with state authorities to pay $1.5 million in penalties. 4. Classical is the plaintiff in a $4 million lawsuit filed against a…
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Smith Electic (SE) owed Estimated Warranty Payable of $1,100 at the end of 2023. During 2024, SE made sales of $100,000 and expects product warranties to cost the company 5% of the sales. During 2024, SE paid $2,600 for warranties. What is SE's Estimated Warranty Payable at the end of 2024? OA. $2,600 OB. $5,000 O C. $6,100 OD. $3,500
Net revenues Standard warranty liability, end of year 158 Charges incurred during the year 163 Extended warranty deferred revenue, end of year 573 Revenue deferred for new extended warranty contracts 260 Warranty expense Required: 1. Compute the amount of warranty expense for 2017 and 2018. (Enter your answers in millions of dollars.) No 1 View transaction list View journal entry worksheet 2 2018 2. Prepare journal entries to record both the warranty expense for 2018 and the payments made under the warranty during the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions of dollars.) Transaction A 2017 B 2018 2017 2016 $81,591 $81, 139 $81,919 192 205 606 307 Warranty expense Estimated warranty liability Estimated warranty liability Cash 196 204 571 303 General Journal Debit Credit Ⓒ
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9.Please answer all the tables in their entirely
Ee 314.
Required:1. Prepare the adjustment to correct the estimated warranty liability on December 31, 2022.