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OleMash [197]
3 years ago
15

EarlKeen Co. sold $260,000 of equipment during January under a one-year warranty. The cost to repair defects under the warranty

is estimated at 4% of the sales price. On August 15, a customer required a $100 part replacement plus $50 of labor under the warranty. Provide the journal entry for (a) the estimated warranty expense on January 31 for January sales on page 10 of the journal and (b) the August 15 warranty work on page 14 of the journal. Refer to the Chart of Accounts for exact wording of account titles.
Business
1 answer:
igomit [66]3 years ago
3 0

Answer:

warranty expense 10,400 (260,000 x 4%)

          warranty liablity  10,400

warranty liability   150

          wages payable  50

         inventory            100

Explanation:

we recognize the expected warranty expense at the moment of the sale.

Then expenses associate with the warranty will decrease the prevision "warranty liability"

The part used come from the company's inventory

and the wages for work on the product, will have to be paid.

<u>Note: </u>it could be cash directly instead of using wages payable account. But because there is no information about those wages being paid I assume are not.

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Answer:

1.21

Explanation:

Current Ratio = Current Asset / Current Liabilities

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2 years ago
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The council members of a small town have decided that the earth levee that protects the town from flooding should be rebuilt and
laiz [17]

Answer:

$230,899

Explanation:

Calculation for what the equivalent present cost is for the first 5 years

Present cost of the repair work = 68,000 * (P/A, 6%,5) - 7,000 * (P/G, 6%,5)

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Therefore the Present cost of the repair work will be $230,899

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2 years ago
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I want to know about starting my own business or franchise can you help me get started thsnk you. Dennisomalley
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In return for the franchise there is a lump sum payment which entitles the acquirer/ franchisee for the use of legal name of that business, also these rights are for a certain number of years.

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2 years ago
George Washburn had earnings from his salary of $34,000, interest on savings of $800, a contribution to a traditional individual
elena-s [515]

Answer:

$33,900 (none of the options given in the question are correct).

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George's adjusted gross income (AGI) will include his personal earnings from his salary, the interest that he has earned from savings, and the dividends that he got from mutual funds, but it will not include his contribution to his individual retirement account, because individual retirement accounts are not included in AGI.

Therefore, George's AGI is equal to:

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