1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
leva [86]
3 years ago
14

Hitzu Co. sold a copier (that costs $4,500) for $9,000 cash with a two-year parts warranty to a customer on August 16 of Year 1.

Hitzu expects warranty costs to be 6% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $114 for materials taken from the repair parts inventory. These are the only repairs required in Year 2 for this copier. Based on experience, Hitzu expects to incur warranty costs equal to 4% of dollar sales. It records warranty expense with an adjusting entry at the end of each year.
Required:
a. How much warranty expense does the company report in 2015 for this copier?
b. How much is the estimated warranty liability for this copier as of December 31, 2015?
c. How much warranty expense does the company report in 2016 for this copier?
d. How much is the estimated warranty liability for this copier as of December 31, 2016?
Business
1 answer:
Makovka662 [10]3 years ago
7 0

Answer:

Explanation:

Requirement 1

Warranty expense in 2015 = $9,000 x 6%

Warranty expense in 2015 =  $540

Note: As mention above Hitzu expects warranty cost to be 6% of dollar sales

Requirement 2

Estimate warranty liability as of Dec 2015 = $540

Requirement 3

Warranty expense in 2016 = 0

Requirement 4

Estimated warrant liability as of Dec 2016 = $540 -$114

Estimated warrant liability as of Dec 2016 = $426

Note: As the repair costs 114 on the same day of repair.

You might be interested in
6. Type of insurance that protects a company in case an employee steals from a
Nataly_w [17]

Answer:

A fidelity bond

Explanation:

Fidelity bond or coverage is the kind of insurance which protects the company or its business owner from the theft, fraud by an employee of the company.

This bond will provide guarantee that if the business owner or company suffers any loss because of employee dishonesty, the chosen insurer will share the loss within the limitations stated in the contract.

5 0
4 years ago
Vulcan Materials stock price soared in the days following the election of President Trump. Vulcan's products, such as asphalt an
aev [14]

Answer:

<h2>Spending on infrastructure projects is an example of <u>Discretionary Fiscal Policy</u> aimed at increasing real GDP and employment.</h2>

Explanation:

  • A discretionary fiscal policy basically refers to the manipulation or adjustment of various fiscal instruments by the government such as public taxes and government spending.
  • The aim of discretionary fiscal policy is to adjust the overall macroeconomic condition in any country based on the existing or current situation or scenario.
  • Now,infrastructural spending is part of fiscal policy or instrument to adjust the macroeconomic condition of the country as reflected by necessary modification in the GDP and employment level.Hence, higher infrastructural spending by the government would expectedly increase the residential and commercial construction projects in the country thereby,enhancing the GDP and the employment level in the country and boost the overall economy.
8 0
3 years ago
Maria spends all of her money on paperback novels and beignets. In 2011 she earned $27.00 per hour, the price of a paperback nov
marishachu [46]

Answer:

1.  The price of a beignet is $3.00 in 2011 and Maria's wage is $27.00 per hour in 2011.

2. The price of a paperback novel is 3 beignets in 2011 and Maria's wage is 9 beignets per hour in 2011.

3. 3 Beignets

4. increases and remains the same

Explanation:

1.  Nominal value is the value of a product based on the money of the day that we see. The price of a beignet is $3.00 in 2011 and Maria's wage is $27.00 per hour in 2011 are the values of the product and wage quoting the money of the day.

2. The real value of a varaible is the value in terms of the value of some other goods. In this case Paperback and Maria's wage are valued in terms of beignets.

3. The relative price of paperback is valued in terms of beignets. So if a beignet costs $6 and a paperback novel is $18. The relative price of a paperback novel will be three times the cost of beignet, since a beignet costs $6.

4. Between 2011 and 2016, the nominal value of Maria's wage increases and the real value of her wage remains the same.

6 0
3 years ago
On June 15, Oakley Inc. sells inventory on account to Sunglass Hut (SH) for $4,500, terms 4/10, n/30. On June 20, SH returns to
Georgia [21]

Answer: $3360

Explanation:

Based on the information given in the question, the amount of cash paid by SH to Oakley will be calculated as thus:

SH will be entitled to a discount of 4% since the payment was made within the discount period, therefore, the discount that is applicable will be:

= $4500 - $1000

= $3,500

Therefore, the amount of cash payment that is made by SH to Oakley will be:

= $3,500 - (4% × $3,500)

= $3500 - (0.04 × $3500)

= $3500 - $140

= $3360

Therefore, the amount of cash paid by SH to Oakley is $3360.

7 0
3 years ago
Rune Co.’s checkbook balance on December 31 was $10,000. On that date, Rune held the following items in its safe: $4,000 check p
jarptica [38.1K]

Answer:

$13,000

Explanation:

<em>Rune Co.'s</em>

<em>As of December 31</em>

Balance as per Bank Statement $10,000

(+) Bank credits and collections $4,000

(-) Bank errors overstate book balance $1,000

Correct Cash Balance $13,000

6 0
3 years ago
Read 2 more answers
Other questions:
  • Whistle works sells each whistle for $12. They have a desired ending inventory for production of 20% of the next months budgeted
    5·1 answer
  • Karen rogers is a salesperson for solar panels inc. she attends builder trade shows to identify potential customers in an effort
    12·1 answer
  • On January​ 2, 2019, Kornis Corporation acquired equipment for $1,000,000. The estimated life of the equipment is 5 years or 100
    15·1 answer
  • Sauder Corporation reports the following information: Net income $380,000 Depreciation expense 70,000 Increase in accounts recei
    5·2 answers
  • 1. Formulate a unique business idea and state the mission and vision statements
    9·1 answer
  • Assume that a context switch takes T time. Suggest an upper bound (in terms of T) for holding a spinlock. If the spinlock is hel
    10·1 answer
  • Part P40 is a part used in the production of air conditioners at Jackson Corporation. The following costs and data relate Number
    11·1 answer
  • Who wants to be my friend and get 10 point reply and follow me . AllyubongAbasiEtuk​
    8·2 answers
  • Critical reading is a
    7·2 answers
  • In the market for gadgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical dow
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!