Warranty Expense: Warranty Expense refers to the cost of repair or replacement that a business may incur in future or has already incurred. Thus, in order to fulfil the warranty claims in future, warranty expense is record and estimated warranty payable is created. Vacation benefits expense: Vacation benefit expense refers to the expense which a company has to bear for holiday pay, vacation pay or sick day pay when an employee is not working. Employee bonus: An employee bonus is the compensation given to employee for over and above the normal wages or salaries. Bonus from the net income (after deducting bonus) is calculated as under – B o n u s t o b e P a i d = B o n u s R a t e X N e t I n c o m e ( 100 % + B o n u s R a t e ) To prepare: Journal entries for MacDonald Industries for the given transactions.

Question

Want to see the full answer?

Answer 1

Question

Chapter 11, Problem E11.22E

To determine

Concept Introduction:

Warranty Expense:

Warranty Expense refers to the cost of repair or replacement that a business may incur in future or has already incurred. Thus, in order to fulfil the warranty claims in future, warranty expense is record and estimated warranty payable is created.

Vacation benefits expense:

Vacation benefit expense refers to the expense which a company has to bear for holiday pay, vacation pay or sick day pay when an employee is not working.

Employee bonus:

An employee bonus is the compensation given to employee for over and above the normal wages or salaries.

Bonus from the net income (after deducting bonus) is calculated as under –

$B o n u s t o b e P a i d = \frac{B o n u s R a t e X N e t I n c o m e}{(100 % + B o n u s R a t e)}$

To prepare:

Journal entries for MacDonald Industries for the given transactions.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

On 17-Feb of year 1, Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,302,500; $295,000 was allocated to the basis of the land and the remaining $1,007,500 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. e. What would be the depreciation for 2024, 2025, and 2026 if the property were nonresidential property purchased and placed in service 17-Feb, 2007 (assume the same original basis)? Depreciation Year Expense 2024 2025 2026

What percentage of RBC’s total assets is held in investments (at October 31, 2020 and 2019)? refer to the 2020 financial statements and accompanying notes of Royal Bank of Canada (RBC). Note that RBC also holds a significant loan portfolio. What is the business reason for holding loans versus securities? Comment on how the investments are classified and presented on the balance sheet. What percentage of total interest income comes from securities (2020 and 2019)? Are there any other lines on the income statement or in OCI) relating to the securities? What percentage of net income (include any relevant OCI items) relates to securities (2020 versus 2019)? Calculate an approximate return on the investments in securities.

You are the partner-in-charge of a large metropolitan office of a regional public accounting firm. Two members of your professional staff have come to you to discuss problems that may affect the firm's independence. Neither of these situations has been specifically answered by the AICPA Professional Ethics Division. Case 1: Don Moore, a partner in the firm, has recently moved into a condominium that he shares with his girlfriend, Joan Scott. Moore owns the condominium and pays all the expenses relating to its maintenance. Otherwise, the two are self-supporting. Scott is a stockbroker, and recently she has started acquiring shares in one of the audit clients of this office of the public accounting firm. The shares are held in Scott's name. At present, the shares are not material in relation to her net worth. 1. What arguments would indicating that the firm's independence has not been impaired? 2. What arguments would indicating that the firm's independence has been impaired? 3. Which…