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3 years ago

Are all warranty costs accounted for under the accrual basis of accounting? explain.

1 answer:

8 0

All warranty costs accounted for under the accrual basis of accounting go under this section unless the repair cost does not have reasonable estimation. If the repair cost does not have reasonable estimation, it goes under the cash basis for accounting. The accrual basis method of accounting is when you record transactions for revenue when earned and expenses as they are incurred.

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Rick Co. had 30 million shares of $1 par common stock outstanding at January 1, 2021. In October 2021, Rick Co.'s Board of Direc

Bond [772]

Answer:

Debit retained earnings for $15.30 million.

Explanation:

As per the data given in the question,

Declaration of common stock dividend indicates no cash payments, only extra shares issued with rate of stock dividend

In this Rick Co. had 30 million shares and Rick Co. declared 1% stock dividend

which means 30 million × 1% = 0.30 million shares issued

Retained earning = (0.30 million × $51)

= $15.30 million

To common stock A/c = (0.30 × $1) = $0.30 million

To capital paid in access A/c = (0.30 million × ($51-$1)) = $15.00 million

( Being stock dividend was issued at 1% )

Hence, Option (d) Debit retained earning for $15.30 million is correct.

8 0

2 years ago

Roland is filing his federal income tax return with the 1040ez form, and he received two w-2 forms. on one, $2620 in federal inc

seropon [69]

3890 is your answer if its apex

5 0

3 years ago

Read 2 more answers

The first US Airline:

olga2289 [7]

Answer:

Western Air Express

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3 years ago

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How many dollars does Johnson & Johnson make every 20 seconds?

Alex Ar [27]

Answer:

Johnson & Johnson make $51,433.28 every 20 seconds

Explanation:

The complete question is

I'm playing a riddle game thing and one of the questions is

"How many dollars does Johnson & Johnson make every 20 seconds?"

I found that they make 81.1 billion dollars yearly, but I have no clue how to get it to 20 seconds.

Remember that

1 year=365 days

1 day=24 hours

1 hour=60 minutes

1 minute=60 seconds

Convert year to seconds

$(365)(24)(60)(60)=31,536,000\ sec$

1 billion=1,000 millions

1 billion=1*10^9

81.1 billion dollars=81.1*10^9 dollars

we have

$81.1*10^{9} \frac{\$}{year}$

Convert to $/sec

$81.1*10^{9}\frac{\$}{year}=81.1*10^{9}/31,536,000=2,571.66\frac{\$}{sec}$

Multiply by 20 sec

$2,571.66(20)=\$51,433.28$

therefore

Johnson & Johnson make $51,433.28 every 20 seconds

3 0

3 years ago

If the interest rate on a savings account is 0.018%, approximately how much money do you need to keep in this account for 1 year

d1i1m1o1n [39]

The answer to this question would be: A. $55,555
In this question, the interest rate is 0.018% and you need to have $9.99 interest. That mean, you need to divide the target interest value with the current interest rate. The equation should be:

interest = bank account * interest rate
$9.99 = bank account * 0.018%
bank account = $9.99/ 0.018% (don't forget the % mean 1/100)
bank account = $55,500

If we assume that the $9.99 value is $9.99... then the answer would be $55,555

7 0

2 years ago

Are all warranty costs accounted for under the accrual basis of​ accounting? explain.

Are all warranty costs accounted for under the accrual basis of accounting? explain.