tion of $150,000. Nelson's attorney advises that it is probable Nelson will lose this lawsuit. The attorney estimates the loss at $150,000 - х for the second half o D ranty Payable assun the Estimated Warr More info Apr. 30 Jun. 30 Jul. 28 Sep. 30 Dec. 31 Nelson is party to a patent infringement lawsuit of $250,000. Nelson's attorney is certain it is remote that Nelson will lose this lawsuit Estimated warranty expense at 2% of sales of $430,000. Warranty claims paid in the amount of $6,300. Nelson is party to a lawsuit for copyright violation of $150,000. Nelson's attorney advises that it is probable Nelson will lose this lawsuit. The attorney estimates the loss at $150,000. Nelson estimated warranty expense on sales for the second half of the year of $470,000 at 2%. Print Done

tion of $150,000. Nelson's attorney advises that it is probable Nelson will lose this lawsuit. The attorney estimates the loss at $150,000 - х for the second half o D ranty Payable assun the Estimated Warr More info Apr. 30 Jun. 30 Jul. 28 Sep. 30 Dec. 31 Nelson is party to a patent infringement lawsuit of $250,000. Nelson's attorney is certain it is remote that Nelson will lose this lawsuit Estimated warranty expense at 2% of sales of $430,000. Warranty claims paid in the amount of $6,300. Nelson is party to a lawsuit for copyright violation of $150,000. Nelson's attorney advises that it is probable Nelson will lose this lawsuit. The attorney estimates the loss at $150,000. Nelson estimated warranty expense on sales for the second half of the year of $470,000 at 2%. Print Done

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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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

The following transactions of Hailey Nelson occurred during 2024:
(Click the icon to view the transactions.)
Requirements
Joumalize required transactions, if any, Nelson's general journal. Explanations are not required.
2. What is the balance in Estimated Warranty Payable assuming a beginning balance of $0?
Sep. 30: Nelson is party to a lawsuit for copyright violation of $150,000. Nelson's attorney advises that it is probable Nelson will lose this lawsuit. The attomey estimates the loss at $150,000.
Date
Sep. 30
Accounts
Dec. 31
D
Dec. 31: Nelson estimated warranty expense on sales for the second half o
Date
Accounts
D
Requirement 2. What is the balance in Estimated Warranty Payable assun
Use the T-account to determine the ending balance for the Estimated Warr
Estimated Warranty Payable
More info
Apr. 30
Jun. 30
Jul. 28
Sep. 30
Dec. 31
4
Nelson is party to a patent infringement lawsuit of $250,000. Nelson's attomey is certain
it is remote that Nelson will lose this lawsuit.
Estimated warranty expense at 2% of sales of $430,000,
Warranty claims paid in the amount of $6,300.
Nelson is party to a lawsuit for copyright violation of $150,000. Nelson's attorney
advises that it is probable Nelson will lose this lawsuit. The attorney estimates the loss
at $150,000.
Nelson estimated warranty expense on sales for the second half of the year of
$470,000 at 2%.
Print
-
Done
X

The following transactions of Hailey Nelson occurred during 2024:
i (Click the icon to view the transactions.)
Requirements
1. Joumalize required transactions, if any, in Nelson's general journal. Explanations are not required.
2.
What is the balance in Estimated Warranty Payable assuming a beginning balance of $0?
Requirement 1. Journalize required transactions, if any, in Nelson's general journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries. For transactions
that do not require an entry, make sure to select "No entry required in the first cell in the "Accounts" column and leave all other cells blank.)
Apr. 30: Nelson is party to a patent infringement lawsuit of $250,000. Nelson's attorney is certain it is remote that Nelson will lose this lawsuit.
Date
Accounts
Credit
Apr. 30
Jun. 30: Estimated warranty expense at 2% of sales of $430,000.
Date
Accounts
Jun. 30
Jul. 28: Warranty claims paid in the amount of $6,300.
Date
Accounts
Jul. 28
Debit
Debit
Debit
Credit
Credit
4

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