The company has estimated warranty expense to be 2% in the past and made an entry for $200,000 in 2020. However, the company decided that it should only be 1.8% this year which amounts to $180,000. Journal entry for 2020 with book has not closed and book has been closed
Q: Waterway Company borrowed $36,000 on November 1, 2025, by signing a $36,000, 10%, 3-month note.…
A: Notes are instruments issued by the borrower. It acts as a negotiable instrument that carries a…
Q: 1)Suppose the company in the previous question offers a two-year extended warranty, which it sells,…
A: Given:Company offers two year extension warrantyExtended warranty sales total=$20000During 2020 the…
Q: Skysong Factory provides a 2-year warranty with one of its products which was first sold in 2025.…
A: The business entities enter the commercial transactions into the journal to keep track of them. To…
Q: Oriole Navigation began operations in 2020 and provides a one-year warranty on the products it…
A: Estimated Warranty is not a contingent liability of the business because it is not dependent on some…
Q: Windsor Factory provides a 2-year warranty with one of its products which was first sold in 2025.…
A: The business entities enter the commercial transactions into the journal to keep track of them. To…
Q: Kingbird Factory provides a 2-year warranty with one of its products which was first sold in 2025.…
A: Summary:-Journal entry is providedExplanation:
Q: Clarity Co. has a year-end of December 31. The company estimates its annual warranty expense to be…
A: A warranty is a promise to the customer that the company would provide free service for the product…
Q: Norse LLC, an accrual basis computer manufacturer, began offer a two-year warranty on their…
A: The cost that a company estimates it will incur for the replacement or repair of products that their…
Q: On January 2, 2020, Crane Company sells production equipment to Fargo Inc. for $46,000. Crane…
A: Journal: Recording of a business transactions in a chronological order.
Q: Stellar Company sold 201 color laser copiers on July 10, 2025, for $4,230 apiece, together with a…
A: The cash realized by stellar company for sale of laser color copiers is $850230 ($4230 × 201…
Q: Agrico Inc. accepted a 10-month, 13% (annual rate), $5,350 note from one of its customers on May 15,…
A: Face value of note = $5,350 Interest Rate = 13% Period (May 15, 2019 to December 31, 2019) = 7.5…
Q: Headland Company must make computations and adjusting entries for the following independent…
A: Liability might indicate that an individual owe someone money or services, but it also frequently…
Q: On October 12, 2020, Golf Co. received from one of its customers, Ping Co., a $30,500, 8% 90 day…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: Cullumber Company offers a five-year warranty on its products. Cullumber previously estimated…
A: Lets understand the basic.The change in accounting estimate is different from the change in…
Q: Blue Factory provides a 2-year warranty with one of its products which was first sold in 2025. Blue…
A: Warranty: It refers to a promise or guarantee that is provided to the buyer by the manufacturer of…
Q: On December 1, 2020, Shaw Company accepted from Bogner a $10,000, 3-month, 8% note in lieu of an…
A: Journal entries are used by the management to record the transactions in the books of accounts.…
Q: On January 2, 2020, Crane Company sells production equipment to Fargo Inc. for $46,000. Crane…
A: Note: Amount for warranty services is not given separatly in the question. So we are taking the…
Q: Swathmore Clothing Corporation grants its customers 30 days’ credit. The company uses the allowance…
A: Journal entries refers to the entries which are made at the end of the period or year and it records…
Q: On January 2, 2020, Monty Company sells production equipment to Fargo Inc. for $47,000. Monty…
A:
Q: Vaughn Company borrowed $31,200 on November 1, 2025, by signing a $31,200, 9%, 3-month note. Prepare…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: Carla Vista Company offers a five-year warranty on its products. Carla Vista previously estimated…
A: Lets understand the basic.The change in accounting estimate is different from the change in…
Q: Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of…
A: A note receivable is a promissory note form in which one person promises to pay the money to another…
Q: heridan, Inc. issued a $125,000, 4-year, 9% note at face value to Flint Hills Bank on January 1,…
A: Journal Entry: Journal entry has two effects for every transaction. The journal entry is passed by…
Q: Monty Company borrowed $52,800 on November 1, 2025, by signing a $52,800, 9%, 3-month note. Prepare…
A: Notes payable is the obligation for an entity. It represents the amount of money to be paid by an…
Q: . Prepare the journal entries of Clear Glass to record the preceding information, the related…
A: Discounting the note implies, the realization of a note amount for a discount before the due date of…
Q: On September 1, 2019, Melanie Corp. borrowed $101,000 in cash and executed a 6-percent,…
A: The total rate of investment a lender pays on a debt obligation during the course of borrowing is…
Q: seeking penalties settlement with state authorities to pay $1.6 million in pen 1 milion lawsuit…
A: Journal entries are those entries that are stated in the books of accounts of a company regarding…
Q: At the end of 2024, Garcia Company’s balance for Accounts Receivable is $11,000, while the company’s…
A: Allowance for uncollectible accounts is a contra asset account It is shown on the balance sheet…
Q: Sheridan Corporation borrowed $62,400 on November 1, 2020, by signing a $63,600, 3-month,…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: Larkspur Corporation borrowed $78,000 on November 1, 2025, by signing a $79,755, 3-month,…
A: Journal entries are part of a bookkeeping system that records day-to-day business-related monetary…
Q: Jane Company extends a warranty on children's tablets. They estimate that 3% of tablets will need to…
A: Adjusting Entry- It includes that transaction which may be omitted or some outstanding balances at…
Q: Martinez Factory provides a 2-year warranty with one of its products which was first sold in 2025.…
A: Journal entries is an art of recording classifying and summarising the business transaction into…
Q: Sales revenue for Booker Company for 2023 amounted to $800,000. The products sold carry a six-month…
A: Warranty Expenses:Warranty expenses refer to those repair or replacement expenses that are either…
Q: Windsor Company borrowed $49,200 on November 1, 2025, by signing a $49,200, 10%, 3-month note.…
A: The adjusting entries are journals made at year-end to correct the account balances. Adjustment…
Q: On February 1, 2021, a company loans one of its employees $28,000 and accepts a eight-month, 7% note…
A: The note receivable is recorded as a current asset in the balance sheet of the company. Given…
Q: At the end of 2023, accounts receivable were $610,000 and the allowance account had a credi…
A: Allowance for doubtful accounts acts as a financial safety net, preparing your business for…
Q: t titles are automatically indented when amount is entered. Do not indent manually. Round…
A: The amount ofrevenue recieved towards warranty contracts is for 2 years. The warranty revenue to be…
Q: 16. On October 1, 2020, Zachary's Balloons borrowed $4,000 on a 12%, one-year note payable. Interest…
A: Semiannual Interest = $4,000 * 12% * 6/12 Semiannual Interest = $240
Q: Sarasota Company borrowed $34,800 on November 1, 2025, by signing a $34,800, 9%, 3-month note.…
A: Journal entries are those which are recorded for every transaction which takes place during the…
Q: Pearl Factory provides a 2-year warranty with one of its products which was first sold in 2025.…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: On November 1, 2023, Tommy Tunes accepted a $15,200, 6-month, 4% note from customer Tammy Notune.…
A: Notes receivable refers to a written, unconditional promise made by an individual or business to pay…
Q: Early in 2020, Pina Equipment Company sold 400 Rollomatics at $6,000 each. During 2020, Pina spent…
A: Warranty means where the company is undertaking to make good the loss which has been incurred due to…
Q: Pharoah Company offers a five-year warranty on its products. Pharoah previously estimated warranty…
A: Retained earnings adjustments are frequent in financial reporting; they are usually made to account…
Q: Pharoah Ltd. borrowed ¥63,600,000 on November 1, 2021, by signing a ¥65,031,000, 3-month, zero-…
A: Formula: Discount on bond = Face value of bond - borrowed amount
Q: Early in 2020, Oriole Equipment Company sold 400 Rollomatics at $6,600 each. During 2020, Oriole…
A: Cash basis alludes to a significant bookkeeping strategy that perceives incomes and costs at the…
Q: Early in 2020, Carla Equipment Company sold 500 Rollomatics at $6,100 each. During 2020, Carla spent…
A: >Warranty is a kind of assurance given to customers that the product being purchased by them will…
Q: Splish Corporation borrowed $58,500 on November 1, 2020, by signing a $60,000, 3-month,…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
![The company has estimated warranty expense to be 2% in the past and made an
entry for $200,000 in 2020. However, the company decided that it should only be
1.8% this year which amounts to $180,000.
Journal entry for 2020 with book has not closed and book has been closed](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18bebb65-81fa-4c87-81e7-92875457a318%2F7cfde9d9-de18-4ac3-ab20-5c722319dbb6%2Fwikdrqi_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?* Your answer is incorrect. Blue Factory provides a 2-year warranty with one of its products which was first sold in 2025. Blue sold $955,800 of products subject to the warranty. Blue expects $136,410 of warranty costs over the next 2 years. In that year, Blue spent $64,790 servicing warranty claims. Prepare Blue's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (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. List all debit entries before credit entries.) Date During 2025 12/31/25 Account Titles and Explanation Cash Warranty Expense (To record payment for warranty costs incurred) Sales Revenue Warranty Llability (To record sales) Warranty Llability Inventory Debit 955800 136410 64790 Credit DO DO [ 955800 136410 64790
- Ivanhoe Factory provides a 2-year warranty with one of its products which was first sold in 2020. Ivanhoe sold $909,800 of products subject to the warranty. Ivanhoe expects $124,480 of warranty costs over the next 2 years. In that year, Ivanhoe spent $73,090 servicing warranty claims. Prepare Ivanhoe's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (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.) Date 2020 During 2020 12/31/20 Account Titles and Explanation (To record sales) (To record warranty claims) Debit CreditHeadland Company must make computations and adjusting entries for the following independent situations at December 31, 2026. 1. Its line of amplifiers carries a 3-year warranty against defects. On the basis of past experience, the estimated warranty costs related to dollar sales are first year after sale-2% of sales revenue; second year after sale-3% of sales revenue; and third year after sale-5% of sales revenue. Sales and actual warranty expenditures for the first 3 years of business were: 2024 2025 2026 Sales Revenue $ 839,200 1,098,000 1,268,000 Warranty Expenditures $ 6,680 16,630 68,030 Compute the amount that Headland should report as a liability in its December 31, 2026, balance sheet. Assume that all sales are made evenly throughout each year with warranty expenses also evenly spaced relative to the rates above. Liability that should be reported on December 31, 2026 $ 2. With some of its products, Headland includes coupons that are redeemable in merchandise. The coupons have…Swifty Company must make computations and adjusting entries for the following independent situations at December 31, 2026. 1. Its line of amplifiers carries a 3-year warranty against defects. On the basis of past experience, the estimated warranty costs related to dollar sales are first year after sale-2% of sales revenue; second year after sale-3% of sales revenue; and third year after sale-5% of sales revenue. Sales and actual warranty expenditures for the first 3 years of business were: Sales Revenue 2024 $764,500 2025 1,177,800 2026 1,155,500 Warranty Expenditures $6,330 16,190 64,340 Compute the amount that Swifty should report as a liability in its December 31, 2026, balance sheet. Assume that all sales are made evenly throughout each year with warranty expenses also evenly spaced relative to the rates above. Liability that should be reported on December 31, 2026 $ 2. With some of its products, Swifty includes coupons that are redeemable in merchandise. The coupons have no…
- Starting 2019, every sale of the main product of Amongus Company will include a three-year warranty. It estimates warranty costs to be incurred at 1% of the sales price at the first year, 2% on the second year and 5% on the third year. Actual warranty expenditures were P37,100 and P72,600 during 2019 and 2020, respectively. Due to a fire incident, the sales journal of Amongus were burnt. It has been determined that the balance of the Estimated Warranty Liability is P309,500 on January 1, 2020 and P507,400 on December 31, 2020 before adjustments. How much sales were made during 2019? How much sales were made during 2020? Assuming that the sales and warranty costs are made evenly, how much is the adjustment to the 2020 ending balance of the Estimate Warranty Liability? [Indicate whether it is a credit/debit adjustment]On January 1 2019, Sunrise Company is experiencing extreme financial pressure and is in default in meeting interest payment on its long term note of P6,000,000 due on December 31, 2020. The interest rate is 12% payable every December 31. The accrued interest payable on January 1, 2019 is P720,000. In the agreement with the creditor, Sunrise Company obtain the following changes in the terms of note: a. The accrued interest on January 1, 2019 is forgiven. b. The principal is reduced by P500,000. c. The new interest rate is 8% payable in every December 31. d. The new date of maturity is December 31, 2022. The present value of 1 at 12% for four period is 0.6355 and the present value of an ordinary annuity of 1 at 12% for four period is 3.0373. Required: 1. Journal entry to record the modification of terms on January 1, 2019. 2. Journal entry to record the interest payment and amortization of discount for 2019.On April 1, 2020, MMM company issues a $105,000, three -month, zero-interest-bearing note to Al-Ahli Bank. The present value of the note is $102,000. Record all necessary entries in 2020 if you know the company prepare financial statement semiannually?
- In 2020, Pluto Company started selling new computer that carried a 2-year warranty against defects. Based on the manufacturer's recommendations, the entity estimated warranty cost as a percentage of sales.First year of warranty - 3%Second year of warranty - 9% 2020 2021 Sales 5,000,000 7,000,000 Actual warranty repairs 100,000 250,000 Prepare the necessary journal entries to record this transaction, using the expense as incurred approach, for the years 2020 and 2021.The Beatles Company only prepares financial statements on December 31, its year-end. The Beatles Company borrows $200,000 on July 1, 2019, from Sandwich State Bank by signing a $200,000, 12%,(annual rate) note that is due to be repaid in 9 months. (Therefore, On April 1, 2020, the amount borrowed plus interest is to be repaid). What is the amount of Interest Payable that Beatles will show on its December 31, 2019 balance sheet? $18,000 $24,000 $12,000 $0, since interest is paid in 2020 $2,000On August 1, 2021, Stucko Company borrowed $21,000 on an 8-month, 3%, short-term note payable. Which account will be credited on April 1, 2022, and for what amount? Stucko Company has a calendar year-end.
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)