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Klio2033 [76]
3 years ago
8

Wright Machinery Corporation manufactures automobile engines for major automobile producers. The engines sell for $910 per engin

e. In addition, customers have the option to purchase a service-type warranty for $70 per engine that protects against any defects for a period of 5 years. During 2019, Wright sold 9,000 engines to National Motors. National Motors purchased warranties on all of the engines purchased. During 2019, Wright repaired defective motors at a cost of $93,400.
Prepare the necessary journal entries to record:__________.1. The sale of engines and service warranty on account during 2016 (one entry).2. The warranty costs paid during 2016.3. The warranty revenue earned in 2016.
Business
1 answer:
goblinko [34]3 years ago
5 0

Answer:

1. The sale of engines and service warranty on account during 2016 (one entry).

Dr Cash 8,820,000

    Cr Sales revenue 8,190,000 (= 9,000 x $910)

    Cr Unearned warranty revenue 630,000 (= 9,000 x $70)

2. The warranty costs paid during 2016.3. The warranty revenue earned in 2016.

to record warranty expenses during the year

Dr Warranty expense 93,400

    Cr Cash 93,400

to record warranty revenue

Dr Unearned warranty revenue 126,000 (= $630,000 / 5 = $126,000)

    Cr Extended warranty revenue 126,000

Explanation:

Service-type warranties sold are a liability for the company (unearned revenue) and they will be accrued as time goes on. In this case, accrued warranty revenue is adjusted annually but it could also be adjusted monthly.

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Explanation:

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5 0
3 years ago
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Becoming more efficient and minimizing start-up costs are ways to
Naddika [18.5K]
The correct answer is d
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3 years ago
Elson co, needs to raise debt and for this purpose issued two different bonds, Bond A and Bond B. Both bonds have 20 years to ma
slega [8]

Answer:

The right solution is "$20.733.16".

Explanation:

According to the question,

Face value,

= $20000

Rate (r),

= .035

Bond A:

= \frac{Face \ value}{(1+r)^n}

= \frac{20000}{(1+.035)^{40}}

= 5051.45 ($)

Bond B:

= \frac{1100\times 12.0941}{(1+.035)^{10}} + \frac{1400\times 10.9205}{(1+.035)^{26}} + \frac{20000}{(1+.035)^{40}}

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5 0
2 years ago
Which senior managers may assume a greater deal of transferability between domestic and international HRM practices?
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Answer: d. All of the Above

Explanation:

All the above senior managers are more likely to apply more Domestic HRM practices to make them International HRM practices when they are put into a situation where International practices will be needed.

This is because they have been with the Domestic companies for much of their time and so know more about Domestic practices than international.

The first options refers to senior managers in firms with large domestic markets. To be a senior manager demands experience in the market they are in so it is not far fetched to say that they are more knowledgeable in domestic practices than international.

The second option speaks of managers with little International experience meaning they are more likely to engage in transferability between domestic and International practices.

The third option speaks of managers who built their careers on domestic experience. They will find it hard letting go of what has brought them such success so will more likely apply domestic practices on an international scale.

7 0
3 years ago
On March 1, Squire Company purchased a new stamping machine with a list price of $24,000. The company paid cash for the machine;
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Answer:

C. $25,960

Explanation:

Cost of asset includes all the cost involved to acquire and install the asset. In simple term all the costs that are necessary to make the asset usable are capitalised and added to the cost of the asset.

In this question stamping machine has following cost which need to be capitalised.

Discounted Price = $24,000 x ( 100% - 3% ) = $24,000 x 97% = $23,280

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Sales Tax = $1,680

Installation cost = $450

Total cost to be capitalized = $23,280 + $550 + $1,680 + $450 = $25,960

Routine Maintenance cost is the routine / period cost which incur every month, It is not necessary to make the asset usable and it is incurred after the asset is used.

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3 years ago
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