Journalize the following transactions: Dec. 31 The accrued product warranty expense for the year is estimated to be 1.5% of sales. Sales for the year totaled $7,760,000. 31 The accrued vacation pay for the year is estimated to be $46,000. 31 Paid Reliable Insurance Co. $85,000 as fund trustee for the pension plan. The annual pension cost is $109,000. If an amount box does not require an entry, leave it blank. Dec. 31 Dec. 31 Dec. 31
Q: On November 1, Jasper Company loaned another company $270,000 at a 8.0% interest rate. The note…
A: Interest revenue reported in first year = Amount of loan x rate of interest x No. of months / 12
Q: Urban Inc. has sales of $45,000 during January and a 90 day warranty on all products sold. It is…
A: Warranty is a selling term provided by the seller to the buyer to repair or replace the goods sold…
Q: A company sold 10,000 TVs in July and estimates warranty expense for these TVs to be $25,000. During…
A: Warranty expenses: Warranty expense is the cost that a business expects to or has already incurred…
Q: Sunny Hills Farm estimated its payroll for the coming year to be $102,000. Its workers' compensation…
A: 1. Estimated cost of workers compensation insurance for the year = Estimated payroll x rate of…
Q: Bon Nebo Co. sold 12,500 annual subscriptions of Bjorn for $45 during December 20Y5. These new…
A: Current liabilities: Current liabilities are a company's short-term financial obligations that are…
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A: A note receivable is a document which is written promise made which indicates an amount to be…
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A: Worker's Compensation:-These are those amount which paid to the workers when they get injured during…
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A: Warranty expense payable is considered as liability that is payable in near future. The company has…
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A: Adjusting entries are those entries which are passed at the end of the period in order to reflect…
Q: Bon Nebo Co. sold 15,500 annual subscriptions of Magazine 20XX for $59 during December 20Y8. These…
A: Federal income tax payable = taxable income x tax rate = 576000 x 40% = $230,400
Q: Mutiple choice: A hospitality company is the maker of an $18,000 note to be paid in quarterly…
A: Long term liabilities are liabilities which are expected to be paid off in the longer duration,…
Q: Nance Company estimates its annual warranty expense as 2% of annual net sales. The following data…
A: Warranty expenses are the expenses incurred on replacement, repair or compensation paid to the user…
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Q: Parker Manufacturing Co. warrants its products for one year. The estimated product warranty is 2.5%…
A: a) Date Accounts title and Explanation Debit ($) Credit ($) Jan 31 Product Warrenty Expense…
Q: Bon Nebo Co. sold 15,500 annual subscriptions of Bjorn for $62 during December 20Y5. These new…
A: Federal income taxes payable = Taxable income x Federal tax rate = $604000*35% = $211,400
Q: Journalize the following transactions:
A: Product warrenty expense = Sales x Estimated percentage of liability = $7,760,000 x 1.5% = $116,400
Q: Accounting for Warranties, vacation, and bonuses McNight Industries completed the following…
A: Employee Bonus = Net income x (bonus rate /(1+bonus rate)) = $52,000*3/103 = $1,515
Q: A company grants a payment extension to its customer by converting that $15,000 accounts payable to…
A: Interest on 45 days note for 30 days 115000*12%*30/360=$150
Q: Pickett Company received a 90 day, six percent note receivable for $20,000 on November 1. How much…
A: Note receivable amount = $20,000 Due period = 90 days Note received date = November 1
Q: Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan…
A: Given: Pension cost = $203,700
Q: Bon Nebo Co. sold 19,000 annual subscriptions of Bjorn for $51 during December 20Y5. These new…
A: Federal Income tax payable = Taxable income * Tax rate
Q: Bon Nebo Co. sold 30,000 annual subscriptions of Bjorn for $105 during December 20Y5. These new…
A: Current liabilities seem to be a business's short financial commitments that must be paid throughout…
Q: Nov. 30: Journalized the monthly payroll for November, based on the following data. Description…
A: answers Description Debit Credit Sales Salaries Expense $135,000 Office Salaries…
Q: Water Closet Co. wholesales bathroom fixtures. During the current year ending December 31, Water…
A: The accrued interest is the amount of interest earned but is not received yet. This is recorded as…
Q: Hall Company sells merchandise with a one-year warranty. In the current year, sales consist of 2,105…
A: The warranty expense refers to the cost expected to be incurred for repair or replacement after the…
Q: Peterson Company billed its customers a total of $840,000 for the month of November. The total…
A: a) Compute the amount of revenue: Total billed amount $840,000 State sales tax (included) 5%…
Q: Hadley Industries warrants its products for one year. The estimated product warranty expense is 4%…
A: Estimated warranty expenses = Sales x 4% = $210,000 x 4% = $8,400
Q: 33. On August 1, 2011, Hampton Construction received a 9 percent, six-month note receivable from…
A: Answer: Assuming that Dusty Roads pays the note plus accrued interest in full. Entry for Collection…
Q: Maas, Incorporated, sells washers and dryers that include a maximum one-year warranty covering…
A: Total estimated warranty liability = 2% * Net sales Total estimated warranty liability = 2% *…
Q: Back in Time Inc. warrants its products for one year. The estimated product warranty is 7% of sales.…
A: Warranty Liability = Sales * Estimated warranty percentage
Q: 2% of annual net sales
A: Warranty expense refers to the cost that the business expects for repair and maintenance of goods…
Q: Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: A company sold 10,000 TVs in July and estimates warranty expense for these TVs to be $25,000. During…
A: Warranty liability indicates the obligations of the company to either replace or repair the defected…
Q: Lachgar Industries warrants its products for one year. The estimated product warranty is 4% of…
A: Estimated liabilities Under warranties = $210,000 x 4% Estimated liabilities Under warranties =…
Q: On Dec. 18, Sheffield Company discounted at Sunshine Bank a $9,600 (maturity value), 140-day note…
A: Given data, Maturity value of note = $9,600 Bank Discount rate = 7% Note dated = Sept. 14 140 day…
Q: Nov. 30: Journalized the monthly payroll for November, based on the following data: Salaries…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Quantas Industries sold $325,000 of consumer electronics during July under a nine-month warranty.…
A: a. Prepare the journal entry to record the estimated warranty expense on July 31 for July sales.
Q: Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received…
A: SOLUTION- INTEREST AMOUNT = PRINCIPLE AMOUNT *RATE OF INTEREST *(NUMBER OF DAYS / 360 DAYS).
Q: Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of…
A: Warranty refers to the terms and conditions that are specified in the contract, these terms and…
Q: Logan Manufacturing Co. warrants its products for one year. The estimated product warranty is 4% of…
A: The question is based on the concept of Financial Accounting.
Q: Back in Time Inc. warrants its products for one year. The estimated product warranty is 6.5% of…
A: Warranty liability at March 31 = Sales x 6.5%
Q: Notes Receivable Water Closet Co. wholesales bathroom fixtures. During the current year ending…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
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- j. Interest was accrued on the note receivable received on October 17 ($100,000, 90-day, 9% note). Assume 360 days per year. Date Description Debit Credit Dec. 31 Interest Receivable v 1,850 X Interest Revenue v 2,250 XA consumer loan of 1000 is being repaid with 24 monthly installments of 50 at the end of each month. Rather than making payments as originally scheduled, the borrower repaid the outstanding principal immediately after the 10th regular installment. Determine the unearned finance charge recovered by the borrower. A. 200.00 B.116.65 C. 83.35 D. 73.40 E. 67.8527. GPS Company estimated annual warranty expense at 8% of net sales. The following data relate to the current year: Warranty liability, January 1: before adjustment - 100,000 debit. After adjustment - 540,000 credit. What is the amount of net sales for the current year? * a. 8,000,000 b. 6,750,000 c. 5,500,000 d. 1,250,000
- Calculating Accrued Interest Likert Company received a 90 day, six percent note receivable for $20,000 on November 1. How much interest income should be accrued on December 31? O$100 O$200 $300 O$40065. Borrowed P100,000 by issuing a 1-year note with 7% annual interest to Century Savings Bank on October 1, 2021. What is the adjusting entry on December 31, 2021? A. Debit: Interest Expense and Credit: Interest Payable P1,750 B. Debit: Interest Expense and Credit. Interest Payable P7,000 C. Debit: Interest Expense and Credit: Interest Payable P3,500 D. Debit: Interest Expense and Credit: Interest Payable P5,250on June 8th Alton Co issued in 62700 8% 120 Day note payable to seller Co. Assume that the fiscal year of seller co ends june 30. using a 360 day year in your calculations, what is the amount of interest revenue recognized by seller in the following year? When required, round your answer to the nearest dollar.
- Q: Zetix borrowed $20,000 on a one-year, 10 percent note payable from the local bank on March 1. Interest was paid quarterly, and the note was repaid one year from the time the money was borrowed. Requirements Calculate the amount of cash payments Zetix was required to make in each of the two calendar years that were affected by the note payable assuming accounting period ends on Dec. 31 each year.Which of the below terms refers to an upfront payment of the payroll remunerated as a percentage of the amount of sales contributed by a sales person? O a. Sales O b. Commission O C. Method O d. Purchase Question 22 If a person takes a mortgage OMR 82,000 for 25 years, with a rate of interest 4% compounded quarterly, what will be the number of periods in which he has to pay interest? a. 125 b. 300 C. 100 d. 60On January 1, 20X1, the company received a $10,000 three-year note bearing interest at 10% annually. The annual interest is received at each December 31. The market interest rate is 12% annually. November 30 is the company’s reporting date. The company used the effective interest method to account for this long-term note receivable. Cash Received Interest Income Discount Amortized Carrying Amount Jan 1, 20x1 9,520 Dec 31, 20x1 1,000 1,142 142 9,662 Dec 31, 20x2 1,000 1,159 159 9,821 Dec 31, 20x3 1,000 1,179 179 10,000 Prepare journal entries on November…
- Given the annual interest rate and a line of an amortization schedule for that loan, complete the next line of the schedule. Assume that payments are made monthly. Annual Interest Paid on Interest Rate Payment Paid Principal Balance 11.6% $425.57 $64.23 $361.34 $6,280.78 Fill out the amortization schedule below. Annual Interest Paid on Payment Balance Interest Rate Paid Principal 11.6% $425.57 $64.23 $361.34 $6,280.78 (Round to the nearest cent as needed.)< Sunshine Service Center received a $40,000, 120-day, 6% note, dated April 12, from a customer on account. Assume 360 days per year. a. Determine the due date of the note. August 10 b. Determine the maturity value of the note. 120 c. Journalize the entry for the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank. Aug. 10 Cash Note Receivable Interest Revenue41 On October 1 of the current year, an entity received a one-year note receivable bearing interest at the market rate. The face amount of the note receivable and the entire amount of the interest are due on September 30 of next year. The interest receivable on December 31 of the current year would consist of an amount representing Group of answer choices Three months of accrued interest income The excess on October 1 of the present value of the note receivable over its fact amount Nine months of accrued interest income Twelve months of accrued interest income