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
wlad13 [49]
4 years ago
14

Dynamo Corporation manufactures toasters. Each toaster comes with a 5-year assurance-type warranty. The toasters sell for $60 ea

ch. During Year 1, Dynamo sells 600 toasters, for cash. Past experience shows that the average warranty costs are $4 each or $2,400 for these toasters. In Year 1, Dynamo pays $500 cash for warranty costs on the toasters sold that year. Required: Prepare Dynamo’s journal entries related to the sales and warranty in Year 1.
Business
1 answer:
nordsb [41]4 years ago
7 0

Answer:

Journal entry to record sale of toasters and warranty

Dr Cash 36,000

    Cr Sales revenue 36,000

Dr Warranty expense 2,400

    Cr Warranty liability 2,400

Adjusting entry for actual warranty expense

Dr Warranty liability 500

    Cr Cash 500

Since the warranty covers a 5 year period, the remaining warranty expense cannot be recognized as warranty revenue yet. Only after the warranty period is over, will any money left over will be recognized as revenue.

You might be interested in
What is not a potential risk of purchasing a used car?a) used cars can require repairs soonerb) warranties can be very limitedc)
Oksi-84 [34.3K]

used cars can require repairs sooner warranties can be very limited used cars can have lower initial cost unexpected issues may arise

hope this helps <3

4 0
3 years ago
Evaluation of the amount of costs incurred should be based on the actual volume of activity rather than the planned volume of ac
inna [77]

Answer:

False

Explanation:

The Performance Evaluation may be defined as the formal as well as a productive procedure to help measure the work of the employee and results is based on their job responsibilities.

For any performance evaluation, the cost that is actually incurred should not be compared to the cost which would have been incurred to the actual volume of the activity or work rather than the planned activity.

Thus the answer is false.

8 0
3 years ago
Hurry!!!! (economics) This graph shows changes in GDP and the unemployment rate in the United States in recent years.
yaroslaw [1]

Answer:

A. When GDP falls, unemployment rises.

Explanation:

7 0
2 years ago
Bikes and More just announced its next annual dividend will be $2.42 a share and all future dividends will increase by 2.5 perce
liq [111]

Answer:

13.5%

Explanation:

market rate of return can be calculated with below expresion

Current Price = D / (K - g)

Where

Current Price = $22 a share

D= Dividend in coming Year

dividend = $2.42

K= rate of return

g =growth rate

22 = 2.42 / (K - 0.025)

Cross multiply we have

22(K - 0.025)= 2.42

Open the bracket we have

22k- 0.55=2.42

2.42 + 0.55= 22k

K = 2.97 / 22

= 0.135

= 0.135×100%

= 13.5%

Therefore, the market rate of return if this stock is currently selling for $22 a share is 13.5

4 0
3 years ago
Along a given downward-sloping demand curve, an increase in the price of a good will: have no effect on consumer surplus. increa
tensa zangetsu [6.8K]
The answer to this question is the last item in the choices which is "decrease consumer surplus". Thus, we have it like along a given downward-sloping demand curve, an increase in the price of a good will also result to decrease consumer surplus. Also, when decrease consumer surplus is happening it will effect also to increase producer surplus.
8 0
3 years ago
Other questions:
  • The January 1, Year 1 trial balance for the Tyrell Company is found on the trial balance tab. The beginning balances are assumed
    14·1 answer
  • Sunland Company’s December 31, 2020, trial balance includes the following accounts: Inventory $124,900, Buildings $208,800, Accu
    14·1 answer
  • If you are trying to move your audience to do something, you should choose which organizational style?
    13·1 answer
  • NewPlastic, Inc., a manufacturer of hats, had two recent contracts for hats, one from WannabecomeBig, Inc. and the other from Wa
    12·1 answer
  • Stan is a real estate broker in Colorado. He has identified a property for a fast food outlet and has asked four friends to cont
    6·2 answers
  • Assume the initial price of the drugwas $50 per unit, and at that price there were 2,000 units sold. Miland, the manufacturerof
    8·1 answer
  • Explain how political and international factors pose challenges to businesses.
    6·1 answer
  • A ____ manages a nations currency, money supply, and interest rate.
    7·1 answer
  • Chile is able to grow and harvest grapes and strawberries in the months of October through April, while in the United States suc
    12·1 answer
  • Assuming noah made 6-month payments on its wood purchases from indonesia, what is the schedule of foreign currency amounts over
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!