Managerial Accounting (Looseleaf)
7th Edition
ISBN: 9781260482935
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 1, Problem 3AA
Samsung’s 2017 annual report discloses the warranty information below. Like Apple, Samsung offers warranties on its products.
Required
1. What amount of warranty expense did Samsung record in 2017? What amount of warranty claims did Samsung pay in 2017?
2. Access Apple’s report in Appendix A and locate “Accrued Warranty and Indemnification” on page A-9 of its notes. What amount of warranty expense did Apple record during 2017? What amount of warranty claims did Apple pay in 2017?
3. Using answers from parts 1 and 2, which company was more accurate in estimating warranty claims for 2017?
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5-a. Compute the extended warranty revenue recognized during 2017 and 2018. (Enter your answers in millions of dollars.)
Extended Warranty revenue
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5-b. Prepare the journal entry to record the revenue recognized in 2018. (If no entry is required for a transaction/event, select "No
journal entry required" in the first account field. Enter your answers in millions of dollars.)
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General Journal
Extended warranty deferred revenue
Extended warranty revenue
Debit
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1. Otis Company sells calculators that carry a one-year warranty against
manufacturer's defects. Based on company experience, warranty costs
are estimated at P300 per calculator. During 2017, Otis sold 24,000
calculators, and paid warranty costs of P170,000.
In its income statement for the year ended December 31, 2017, how
much should Otis report as warranty expense?
a. 1,700,000
b. 2,400,000
c. 5,500,000
d. 7,200,000
2. In May 2017, Maive Company filed suit against Wiley, Inc. seeking
P850,000 damages for patent infringement. A court verdict in November
2017 awarded Maive P600,000 in damages, but Wiley's appeal is not
expected to be decided before 2017. Maive's counsel believes it is
probable but not virtually certain that Maive will be successful
against Wiley for an estimated amount in the range between P300,000
and P450, 000, with P400,000 considered the most likely amount. What
amount should Maive record as contingent asset from lawsuit in the
year ended December 31, 2017?
a. None…
6 Miele Appliances owed estimated warranty payable of $1000 at the end of 2016. During
2017, Miele made sales of $100000 and expects product warranties to cost 4% of the sales.
During 2017, Miele paid $2800 for warranties. What is Miele's estimated warranty payable
at the end of 2017?
a $3 500
b $2 500
c $2 200
d $1 500
Chapter 1 Solutions
Managerial Accounting (Looseleaf)
Ch. 1 - Prob. 1MCQCh. 1 - What is Ella Company’s current ratio? a.0.69...Ch. 1 - What is Ella Company’s acid-test ratio? a.2.39...Ch. 1 - What is Ella Company’s debt ratio? a. 25.78% b....Ch. 1 - What is Ella Company’s equity ratio? a.25.78%...Ch. 1 - Describe the managerial accountant’s role in...Ch. 1 - Distinguish between managerial and financial...Ch. 1 - Prob. 3DQCh. 1 - Prob. 4DQCh. 1 - Distinguish between (a) factory overhead and (b)...
Ch. 1 - Prob. 6DQCh. 1 - What product cost is both a prime cost and a...Ch. 1 - APPLE Assume that we tour Apple’s factory where it...Ch. 1 - Prob. 9DQCh. 1 - Prob. 10DQCh. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - Prob. 13DQCh. 1 - Prob. 14DQCh. 1 - Prob. 15DQCh. 1 - Prob. 16DQCh. 1 - Prob. 17DQCh. 1 - What are the three categories of manufacturing...Ch. 1 - List several examples of factory overhead.Ch. 1 - Prob. 20DQCh. 1 - GOOGLE Prepare a proper title for the annual...Ch. 1 - Prob. 22DQCh. 1 - Prob. 23DQCh. 1 - Prob. 24DQCh. 1 - Prob. 25DQCh. 1 - Prob. 1QSCh. 1 - Prob. 2QSCh. 1 - Fixed and variable costs C2 Listed below are...Ch. 1 - QS 14-4 Direct and indirect costs C2
Diez Company...Ch. 1 - Classifying product costs C2 Identify each of the...Ch. 1 - QS 14-6 Product and period costs C3
Identify each...Ch. 1 - Prob. 7QSCh. 1 - Prob. 8QSCh. 1 - Prob. 9QSCh. 1 - Prob. 10QSCh. 1 - Prob. 11QSCh. 1 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Prob. 14QSCh. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 1 - Raw materials inventory management A1 Nestlé...Ch. 1 - Exercise 14-1 Sources of accounting information C1...Ch. 1 - Prob. 2ECh. 1 - Exercise 14-3 Cost classifications for a service...Ch. 1 - Exercise 14-4 Cost classifications for a service...Ch. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Prob. 8ECh. 1 - Exercise 14-9 Preparing financial statements for a...Ch. 1 - Prob. 10ECh. 1 - Prob. 11ECh. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Prob. 14ECh. 1 - Prob. 15ECh. 1 - Prob. 16ECh. 1 - Exercise 14-17 Lean business practice C6 Many...Ch. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 1PSACh. 1 - Prob. 2PSACh. 1 - Prob. 3PSACh. 1 - Prob. 4PSACh. 1 - Prob. 5PSACh. 1 - Prob. 1PSBCh. 1 - Prob. 2PSBCh. 1 - Problem 14-3B Schedule of cost of goods...Ch. 1 - Problem 14-4B Ending inventory computation and...Ch. 1 - Prob. 5PSBCh. 1 - Prob. 1SPCh. 1 - Prob. 1AACh. 1 - Both Apple and Google (Alphabet) invest in...Ch. 1 - Samsung’s 2017 annual report discloses the...Ch. 1 - Prob. 1BTNCh. 1 - Prob. 2BTNCh. 1 - Prob. 3BTNCh. 1 - Prob. 4BTNCh. 1 - Prob. 5BTNCh. 1 - Prob. 6BTN
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