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Business Accounting Financial Accounting: Information for Decisions

1. Introduction : Journal entry is a technique of booking and recording the financial transaction on any company. Account receivable is an amount of money which company has to receive from someone for any provided service or for sale of product. To prepare: The journal entries for the given transaction. Journal entries are shown below. Journal entries of L Co. for the month of March are shown below. Date Particular PR Dr.$ Cr.$ Nov 11 2016 Cash $7,875 Sales $7,875 (To record sales for cash) Nov, 30 2016 Warranty expenses $630 Estimated warranty liability $630 (to record estimated warranty liability) Dec, 9 2016 Estimated warranty liability $300 Repair parts inventory $300 To record cost of warranty repairs Dec, 16 2016 Cash $16,500 Sales $16,500 (To record sales for cash) Dec 29 2016 Estimated warranty liability $600 Repair parts inventory $600 (To record cost of warranty repairs) Dec 31 2016 Warranty expenses $1320 Estimated warranty liability $1320 (to record estimated warranty liability) Jan 5 2017 Cash $11250 Sales $11250 (To record sales for cash) Jan 17, 2017 Estimated warranty liability $1000 Repair parts inventory $1000 (To record cost of warranty repairs) Jan 31 2018 Warranty expenses $900 Estimated warranty liability $900 (to record estimated warranty liability) 2. Introduction : Journal entry is a technique of booking and recording the financial transaction on any company. Account receivable is an amount of money which company has to receive from someone for any provided service or for sale of product. To calculate: Warranty expense for Nov is $630 and Dec is $1,320 Warranty expense for Nov is $630 and Dec is $1,320 Warranty expense for Nov.: W a r r a n t y e x p e n s e f o r N o v = ( $ 2500 × 10 100 ) = $ 250 Warranty expense for Dec.: W a r r a n t y e x p e n s e f o r N o v = ( S a l e s × p e r c e n t a g e o f w a r r a n t y ) = ( $ 7875 × 8 100 ) = $ 630 W a r r a n t y e x p e n s e f o r Dec = ( S a l e s × p e r c e n t a g e o f w a r r a n t y ) = ( $ 16 , 500 × 8 100 ) = $ 1 , 320 Warranty expense for Nov is $630 and Dec is $1,320 3. Introduction : Journal entry is a technique of booking and recording the financial transaction on any company. Account receivable is an amount of money which company has to receive from someone for any provided service or for sale of product. To compute: Warranty expense for Jan. Warranty expense for Jan is $900 Warranty expense for Jan.: W a r r a n t y e x p e n s e = ( S a l e s × p e r c e n t a g e o f w a r r a n t y ) = ( $ 11250 × 10 100 ) = $ 900 Warranty expense for Jan is $900 4. Introduction : Journal entry is a technique of booking and recording the financial transaction on any company. Account receivable is an amount of money which company has to receive from someone for any provided service or for sale of product. To prepare: Estimate the liability for 2016. The estimated liability account as on December 31 2016 is $1050 Particular Amount Expense for warranty in month of November $630 Expense for warranty in month of December $1320 Less: Cost pertaining to replacement of items ( 45 × $ 20 ) $900 Estimated balance for warranty liability $1050 The estimated liability account as on December 31 2016 is $1050 5. Introduction : Journal entry is a technique of booking and recording the financial transaction on any company. Account receivable is an amount of money which company has to receive from someone for any provided service or for sale of product. To prepare: The account receivable and doubtful account for the following transaction. Balance sheet is given below Particular Amount Warranty liability in the beginning $1050 Expense for warranty in the month of January $900 Less: cost pertaining to replacement of items ( 50 × $ 20 ) ($1000) Estimated balance for warranty liability $950 The estimated liability account as on January 31 2017 is $950

1. Introduction : Journal entry is a technique of booking and recording the financial transaction on any company. Account receivable is an amount of money which company has to receive from someone for any provided service or for sale of product. To prepare: The journal entries for the given transaction. Journal entries are shown below. Journal entries of L Co. for the month of March are shown below. Date Particular PR Dr.$ Cr.$ Nov 11 2016 Cash $7,875 Sales $7,875 (To record sales for cash) Nov, 30 2016 Warranty expenses $630 Estimated warranty liability $630 (to record estimated warranty liability) Dec, 9 2016 Estimated warranty liability $300 Repair parts inventory $300 To record cost of warranty repairs Dec, 16 2016 Cash $16,500 Sales $16,500 (To record sales for cash) Dec 29 2016 Estimated warranty liability $600 Repair parts inventory $600 (To record cost of warranty repairs) Dec 31 2016 Warranty expenses $1320 Estimated warranty liability $1320 (to record estimated warranty liability) Jan 5 2017 Cash $11250 Sales $11250 (To record sales for cash) Jan 17, 2017 Estimated warranty liability $1000 Repair parts inventory $1000 (To record cost of warranty repairs) Jan 31 2018 Warranty expenses $900 Estimated warranty liability $900 (to record estimated warranty liability) 2. Introduction : Journal entry is a technique of booking and recording the financial transaction on any company. Account receivable is an amount of money which company has to receive from someone for any provided service or for sale of product. To calculate: Warranty expense for Nov is $630 and Dec is $1,320 Warranty expense for Nov is $630 and Dec is $1,320 Warranty expense for Nov.: W a r r a n t y e x p e n s e f o r N o v = ( $ 2500 × 10 100 ) = $ 250 Warranty expense for Dec.: W a r r a n t y e x p e n s e f o r N o v = ( S a l e s × p e r c e n t a g e o f w a r r a n t y ) = ( $ 7875 × 8 100 ) = $ 630 W a r r a n t y e x p e n s e f o r Dec = ( S a l e s × p e r c e n t a g e o f w a r r a n t y ) = ( $ 16 , 500 × 8 100 ) = $ 1 , 320 Warranty expense for Nov is $630 and Dec is $1,320 3. Introduction : Journal entry is a technique of booking and recording the financial transaction on any company. Account receivable is an amount of money which company has to receive from someone for any provided service or for sale of product. To compute: Warranty expense for Jan. Warranty expense for Jan is $900 Warranty expense for Jan.: W a r r a n t y e x p e n s e = ( S a l e s × p e r c e n t a g e o f w a r r a n t y ) = ( $ 11250 × 10 100 ) = $ 900 Warranty expense for Jan is $900 4. Introduction : Journal entry is a technique of booking and recording the financial transaction on any company. Account receivable is an amount of money which company has to receive from someone for any provided service or for sale of product. To prepare: Estimate the liability for 2016. The estimated liability account as on December 31 2016 is $1050 Particular Amount Expense for warranty in month of November $630 Expense for warranty in month of December $1320 Less: Cost pertaining to replacement of items ( 45 × $ 20 ) $900 Estimated balance for warranty liability $1050 The estimated liability account as on December 31 2016 is $1050 5. Introduction : Journal entry is a technique of booking and recording the financial transaction on any company. Account receivable is an amount of money which company has to receive from someone for any provided service or for sale of product. To prepare: The account receivable and doubtful account for the following transaction. Balance sheet is given below Particular Amount Warranty liability in the beginning $1050 Expense for warranty in the month of January $900 Less: cost pertaining to replacement of items ( 50 × $ 20 ) ($1000) Estimated balance for warranty liability $950 The estimated liability account as on January 31 2017 is $950

Solution Summary: The author explains that journal entry is a technique of booking and recording the financial transaction on any company.

Financial Accounting: Information for Decisions

Financial Accounting: Information for Decisions

8th Edition

ISBN: 9781259533006

Author: John J Wild

Publisher: McGraw-Hill Education

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Financial Accounting: Information for Decisions

Ch. 9 - Prob. 1DQ Ch. 9 - Prob. 2DQ Ch. 9 - Prob. 3DQ Ch. 9 - Prob. 4DQ Ch. 9 - What is the combined amount (in percent) of the...Ch. 9 - What is the current Medicare tax rate? This rate...Ch. 9 - Prob. 7DQ Ch. 9 - Prob. 8DQ Ch. 9 - Prob. 9DQ Ch. 9 - Why are warranty liabilities usually recognized on...

Ch. 9 - Prob. 11DQ Ch. 9 - Prob. 12DQ Ch. 9 - Prob. 13DQ Ch. 9 - Prob. 14DQ Ch. 9 - Prob. 15DQ Ch. 9 - Prob. 16DQ Ch. 9 - Prob. 17DQ Ch. 9 - Prob. 1QS Ch. 9 - Prob. 2QS Ch. 9 - Ticketsales, Inc., receives $5,000,000 cash in...Ch. 9 - Prob. 4QS Ch. 9 - Prob. 5QS Ch. 9 - Prob. 6QS Ch. 9 - Prob. 7QS Ch. 9 - Prob. 8QS Ch. 9 - Prob. 9QS Ch. 9 - Prob. 10QS Ch. 9 - Prob. 11QS Ch. 9 - Prob. 12QS Ch. 9 - Sera Corporation has made and recorded its...Ch. 9 - Prob. 1E Ch. 9 - Prob. 2E Ch. 9 - Prob. 3E Ch. 9 - Interest-bearing notes payable with year-end...Ch. 9 - Prob. 5E Ch. 9 - Prob. 6E Ch. 9 - Prob. 7E Ch. 9 - Prob. 8E Ch. 9 - Prob. 9E Ch. 9 - Hitzu Co. sold a copier costing $4,800 with a...Ch. 9 - Prob. 11E Ch. 9 - Prob. 12E Ch. 9 - Accounting for contingent liabilities C3 Prepare...Ch. 9 - Prob. 14E Ch. 9 - Prob. 15E Ch. 9 - Prob. 16E Ch. 9 - Prob. 18E Ch. 9 - Prob. 1PSA Ch. 9 - Prob. 2PSA Ch. 9 - Prob. 3PSA Ch. 9 - Prob. 4PSA Ch. 9 - Prob. 5PSA Ch. 9 - Entries for payroll transactions P2 P3 P5...Ch. 9 - Prob. 1PSB Ch. 9 - Prob. 2PSB Ch. 9 - Fishing Guides Co. has four employees. FICA Social...Ch. 9 - Prob. 4PSB Ch. 9 - Shown here are condensed income statements for two...Ch. 9 - Prob. 6PSB Ch. 9 - Prob. 9SP Ch. 9 - Refer to the financial statements of Apple in...Ch. 9 - Key figures for Apple and Google follow. *Apple...Ch. 9 - Prob. 3BTN Ch. 9 - Prob. 5BTN Ch. 9 - Assume that your team is in business and you must...Ch. 9 - Prob. 7BTN Ch. 9 - Prob. 8BTN Ch. 9 - Prob. 9BTN

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