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ollegr [7]
3 years ago
14

Bearcat Construction begins operations in March and has the following transactions.

Business
1 answer:
vesna_86 [32]3 years ago
8 0

Answer:

March 1 Issue common stock for $21,000.

  • Dr Cash 21,000
  •     Cr Common stock 21,000

March 5 Obtain $9,000 loan from the bank by signing a note.

  • Dr Cash 9,000
  •     Cr Notes payable 9,000

March 10 Purchase construction equipment for $25,000 cash.

  • Dr Equipment 25,000
  •     Cr Cash 25,000

March 15 Purchase advertising for the current month for $1,100 cash.

  • Dr Advertising expense 1,100
  •     Cr Cash 1,100

March 22 Provide construction services for $18,000 on account.

  • Dr Accounts receivable 18,000
  •     Cr Service revenue 18,000

March 27 Receive $13,000 cash on account from March 22 services.

  • Dr Cash 13,000
  •     Cr Accounts receivable 13,000

March 28 Pay salaries for the current month of $6,000.

  • Dr Salaries expense 6,000
  •     Cr Cash 6,000
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Explanation:

What is express warranty?

An express warranty arises from the parties’ negotiations in a sales transaction. Express warranties are often included in the written terms of a contract. An “express” warranty by a seller is created by:

Any statement of fact or promise relating to the goods sold which becomes part of the basis of the bargain between the parties, creating a warranty that the goods will conform to the statement or promise.

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An express warranty may be created even if the seller does not use formal words such as “warranty” or “guarantee,” and even if the seller does not have a specific intention to make a warranty. However, an express warranty is not created merely because the seller makes a statement as to the value of the goods, or as to seller’s opinion of the goods. Generally, statements made by a seller during the course of contract negotiations are treated as statements of fact, unless it can be shown that the buyer could only have reasonably considered the statement to be an opinion.

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Explanation:

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answer can be seen in the attached file

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