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Elan Coil [88]
3 years ago
7

A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are $185,000. The curr

ent period's entry to record the warranty expense is:
Business
1 answer:
jasenka [17]3 years ago
4 0

Answer:

Dr Warranty Expense 7,400

Cr Estimated Warranty Liability 7,400

Explanation:

Based on the information given we were told that the company estimated that the warranty expense will be 4% of sales in which the sales for the current period was the amount of $185,000. Therefore the current period's Journal entry to record the warranty expense is:

Dr Warranty Expense 7,400

Cr Estimated Warranty Liability 7,400

(185,000 x 0.04 = 7,400)

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An investment of $1 each in two different securities led to a value of $11 (Security A) and $16 (Security B), respectively, afte
jonny [76]

Answer:

A

Explanation:

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years

Security A : 11 = 1( 1 + r)^15

11^(1/15) =  1( 1 + r)

1.173 = 1 + r

r = 1.173 - 1

r = 17.33%

Security A : 16 = 1( 1 + r)^15

16^(1/15) =  1( 1 + r)

1.20 = 1 + r

r = 1.2 - 1

r = 0.2

r = 20%

Security B earned a higher average annual rate of return as 20% is greater than 17.33%

3 0
3 years ago
Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserv
dlinn [17]

Answer:

Change in Excess Reserves $1,350,000

Change in Required Reserves $450,000

Explanation:

Preparation of the table to show the effect of a new deposit on excess and required reserves

Based on the information given since the REQUIRED RESERVE RATIO is 25%, which means that First Main Street Bank will hold 25% of its initial deposit leading to INCREASE in the REQUIRED RESERVE by the amount of $450,000 (25%*$1,800,000) while the remaining 75% (100%-25%) will be the EXCESS RESERVES of the amount of $1,350,000 (75%*$1,800,000).

Hence:

Amount Deposited: $1,800,000

Change in Excess Reserves=$1,350,000

Change in Required Reserves= $450,000

Therefore the effect of a new deposit on excess and required reserves will be:

Change in Excess Reserves $1,350,000

Change in Required Reserves $450,000

4 0
3 years ago
Related to the Economics in Practice on page​ 77: If a hurricane results in the supply of hotel rooms decreasing and the demand
UkoKoshka [18]

Answer:

Increases; Ambiguous effect on equilibrium quantity

Explanation:

This situation states that the supply of hotel rooms decreases and the demand for hotel rooms increases due to the hurricane, so this change will shift both the supply curve and the demand curve in the hotel rooms market.

This will shift the supply curve leftwards and demand curve rightwards, therefore as a result, there is an increase in the equilibrium prices and the effect of this change on the equilibrium quantity is ambiguous because that will be dependent upon the magnitude of the shifts of demand and supply curve.

5 0
3 years ago
you are working to finish an assigned task in order to meet your ship goal when the co-workers and ask you for your help with so
Allushta [10]

The best thing that I can do is to work in my task while giving instructions to my co worker on what to do in regard to the thing he or she needs help on. The least thing I can do is not to help someone who is in need as I know in the future I may need one's help too.

4 0
3 years ago
Read 2 more answers
When a buyer’s willingness to pay for a good is equal to the price of the good, the?
viktelen [127]
Measures the value that a buyer places on a good
7 0
3 years ago
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