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lukranit [14]
3 years ago
13

On September 11, 2016, Home Store sells a mower for $590 with a one-year warranty that covers parts. Warranty expense is estimat

ed at 10% of sales. On July 24, 2017, the mower is brought in for repairs covered under the warranty requiring $41 in materials taken from the Repair Parts Inventory. Prepare the September 11, 2016, entry to record the mower sale, and the July 24, 2017, entry to record the warranty repairs. (Round your answers to 2 decimal places.)
Business
2 answers:
Andrew [12]3 years ago
6 0

Answer:

Sep 11 2016      Debit       Credit

Cash                 $590

         Sales                      $590

To record the sales

Sep 11 2016                                  Debit       Credit

Warranty Expense (590×10%)     $59

       Estimated Warranlty Liability                 $59

To record  Estimated Warranlty Liability

July 24 20167                                 Debit       Credit

Estimated Warranlty Liability          $41

       Repair Parts inventory                            $41

Explanation:

The entry to record the mower sale, and the July 24, 2017, entry to record the warranty repairs would be as follows:

Sep 11 2016      Debit       Credit

Cash                 $590

         Sales                      $590

To record the sales

Sep 11 2016                                  Debit       Credit

Warranty Expense (590×10%)     $59

       Estimated Warranlty Liability                 $59

To record  Estimated Warranlty Liability

July 24 20167                                 Debit       Credit

Estimated Warranlty Liability          $41

       Repair Parts inventory                            $41

Ad libitum [116K]3 years ago
4 0

Answer:

Sep 11

Dr Cash 590.00

Cr Sales 590.00

Dec 31

Dr Warranty expense 59.00

Cr Estimated warranty liability 59.00

July 24

Dr Estimated warranty liability 41.00

Cr Repair parts inventory 41.00

Explanation:

Home Store Journal entry

Sep 11

Dr Cash 590.00

Cr Sales 590.00

Dec 31

Dr Warranty expense (590*10%) 59.00

Cr Estimated warranty liability 59.00

July 24

Dr Estimated warranty liability 41.00

Cr Repair parts inventory 41.00

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Oxana [17]

Answer:

($62,000)

Explanation:

Calculation for the monthly financial advantage (disadvantage) for the company of eliminating this product

Keep Product X Drop Product X Difference

Sales $387,500 $0 $(387,500)

($25 per unit *15,500=$387,500)

Variable expenses $294,500 $0 $294,500

($19 per unit*15,500=$294,500)

Contribution margin $93,000 $0 $(93,000)

Fixed expenses $105,000 $74,000 $31,000

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Therefore the monthly financial advantage (disadvantage) for the company of eliminating this product will be decrease in Net operating amount of ($62,000).

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3 years ago
On January 23, 10,000 shares of Tolle Company are acquired at a price of $30 per share plus a $100 brokerage commission. On Apri
Vaselesa [24]

Answer:

January 23rd

Dr Investment in Tolle                 300,100

Cr Cash                                        300,100

(to record the acquired of 10,000 Tolle's shares at $30 each and a brokerage cost of $100)

April 12th

Dr Cash                                 5,000

Cr Dividend Revenue          5,000

(to record dividend revenue from 10,00 Tolle's shares at $0.5 each)

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Dr Cash                                           135,900

Cr Investment on Tolle                 120,040

Cr Gain on investment disposal   15,860

(to record the sales of 4,000 Tolle's shares at $34 plus $110 commission fees incurred).

Explanation:

All the explanation is given at the end of each transaction. Further explanation as below:

Given there is no information mentioned whether the share acquired is fro 20% to above and the partial disposal of the investment comes quite near to the time of first acquire; we apply the Cost Method for accounting these transactions.

In the June 10th transaction, we have:

- The actual selling price per share = (Selling price x share sold - Brokerage commission) / share sold = ( 34 x 4,000 - 100) / 4,000 = $33.975;

- The cost of share sold per share = ( Purchasing price x share purchase - Brokerage commission)/ share purchased = ( 30 x 10,000 + 100) / 10,000 = $30.01

=> Cost of share recorded ( Cr Investment account) = 30.01 x 4,000 = 120,040;

=> Gain on investment disposal = ( 33.975 - 30.01) x 4,000 = 15,860.

=> Cash receipt = 4,000 x 34 - 100 = $135,900.

3 0
3 years ago
Gwendolyn and jack francis are investors with no financial training or investment background. which approach will they likely ta
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The answer is <u>"They will chose investments with less risk".</u>


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In the event that you are investing cash you won't have to use inside the following ten years you might need to consider something that offers the potential for a higher return, which may likewise involve going for additional risk.  

The way toward building a portfolio implies you astutely select speculations with various levels of risk so they cooperate toward a shared objective.

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A team is trying to determine the best process type for producing a new product family. The product consists of a base model wit
Natali5045456 [20]

Answer:

The correct answer is the option A: Cell

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Toby and Keith are planning to create and jointly own a company that will license their patented technology solely for royalties
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