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vivado [14]
3 years ago
7

Hitzu Co. sold a copier costing $4,800 with a two-year parts warranty to a customer on August 16, 2016, for $6,000 cash. Hitzu u

ses the perpetual inventory system. On November 22, 2017, the copier requires on-site repairs that are completed the same day. The repairs cost $209 for materials taken from the Repair Parts Inventory. These are the only repairs required in 2017 for this copier. Based on experience, Hitzu expects to incur warranty costs equal to 4% of dollar sales. It records warranty expense with an adjusting entry at the end of each year.
1. How much warranty expense does the company report in 2016 for this copier?
2. How much is the estimated warranty liability for this copier as of December 31, 2016?
3. How much warranty expense does the company report in 2017 for this copier?
4. How much is the estimated warranty liability for this copier as of December 31, 2017?
5. Prepare journal entries to record (a) the copier’s sale; (b) the adjustment on December 31, 2016, to recognize the warranty expense; and (c) the repairs that occur in November 2017.
Business
1 answer:
g100num [7]3 years ago
6 0

Answer:

1. $240

2. $240

3. $0

4. $31

5. August 16, 2016

Dr Cash $6,000

Cr Sales $6,000

Aug. 16, 2016

Dr Cost of goods sold $4,800

Cr Merchandise inventory $4,800

Dec 31,2016

Dr Warranty expense $240

Cr Estimated warranty liability $240

Nov. 22, 2017

Dr Estimated warranty liability $209

Cr Repair parts inventory $209

Explanation:

1. Calculation to determine How much warranty expense does the company report in 2016 for this copier

Warranty expense = 4% × $6,000

Warranty expense= $240

Therefore the amount of warranty expense that the company report in 2016 for this copier is $240

2. Calculation to determine How much is the estimated warranty liability for this copier as of December 31, 2016

Estimated warranty liability= 6% × $6,000

Estimated warranty liability= $240

Therefore estimated warranty liability for this copier as of December 31, 2016 is $240

3. The 2017 warranty expense that the company report in 2017 for this copier will be $0 because NO ADDITIONAL WARRANTY EXPENSE in the year 2017 should be reported for this copier

4. Calculation to determine how much is the estimated warranty liability for this copier as of December 31, 2017

2017 ESTIMATED WARRANTY LIABILITY

Beginning 2017 balance $240

(4%*$6,000)

Less Parts cost ($209)

Ending 2017 balance $31

Thereforea m the estimated warranty liability for this copier as of December 31, 2017 is $31

5. Preparation of the journal entries

August 16, 2016

Dr Cash $6,000

Cr Sales $6,000

Aug. 16, 2016

Dr Cost of goods sold $4,800

Cr Merchandise inventory $4,800

Dec 31,2016

Dr Warranty expense $240

Cr Estimated warranty liability $240

Nov. 22, 2017

Dr Estimated warranty liability $209

Cr Repair parts inventory $209

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Explanation:

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3 years ago
What responsibility, if any, does fishpeople have to the local fishing industry?​
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Answer:

IN UK

Explanation:

Contents

Rules for access to waters after the UK leaves the EU

Quota allocations and fishing opportunities

North-East Atlantic Fisheries Commission (NEAFC) Convention Area

Regional fisheries management organisations (RFMOs)

Access to ports

EU and non-EU (third country) vessels landing into UK ports

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Exporting UK-caught fish and fishery products to the EU

Importing EU-caught fish and fishery products to the UK

Labelling and marketing of fishery and aquaculture products

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Eels and eel products

Rules for access to waters after the UK leaves the EU

When the UK leaves the EU, the government will control and manage access to fish in UK waters. It will be responsible for managing the UK’s:

territorial waters (out to 12 nautical miles)

Exclusive Economic Zone (out to 200 nautical miles or the median line with other states)

The UK government will make sure that fisheries control and enforcement continue.

UK waters

There will be no change to your rights and responsibilities if you have a UK-registered vessel fishing in UK waters. You must continue to comply with the law and the conditions of your licence, including the economic link criteria.

Non-UK-registered vessels will no longer have automatic access to UK waters. This will be subject to any existing agreements covering territorial waters.

EU and non-EU (third country) waters

There will be no automatic access for UK-registered vessels to fish in EU or non-EU (third country) waters. This will be subject to any existing agreements covering territorial waters.

Quota allocations and fishing opportunities

If you’re a UK quota holder, the UK fisheries administrations will tell you what your allocation will be. They aim to do this in October 2019.

The government will also confirm arrangements for:

non-quota shellfish (scallops, edible crabs and spider crabs)

demersal species under the Western Waters effort regime (demersal species live mainly on or near the sea floor)

There will be no automatic access for:

the UK Fisheries Administrations to exchange fishing opportunities with EU member states

EU member states to exchange fishing opportunities with the UK

North-East Atlantic Fisheries Commission (NEAFC) Convention Area

You can prepare for the UK joining the NEAFC. For UK-registered vessels to continue fishing in the convention area, and landing into the EU, you must hold a current UK domestic licence. You’ll need this before you can apply for an international licence from the relevant fisheries authority.

Please contact your local fisheries authority office if you want further guidance on fishing internationally. You’ll also need to register with the NEAFC’s electronic Port State Control system and complete the Port State Control 1 forms.

Regional fisheries management organisations (RFMOs)

The UK will join all relevant RFMOs as quickly as possible - it will no longer be a member of RFMOs through EU membership. The joining process may take up to 6 months.

During this time, UK vessels may not be able to fish in international waters covered by RFMOs. The Department for Environment, Food and Rural Affairs (Defra) will keep fishermen informed of progress and what the outcome of a decision will mean in practice.

Access to ports

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You must notify the relevant Fisheries Monitoring Centre of your intention to arrive into a designated port. You must notify vessel and catch-related information

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Answer:

Explanation:

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(Being recording of the carry forward amount is done)

Benefit due to loss carry forward A/c  Dr $259,000      

        To allowance to reduce deferred tax to expected realizable value $259,000      

(Being allowance amount is recorded)

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Answer:

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Explanation:

Cash flows from financing activities show the inflow and outflow of cash that are used to fund the business's operations.

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Net cash from financing activities...............................($174,000)

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