1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
The supply of product X is perfectly inelastic if the price of X increases by _______ and, as a result of the price change, the
konstantin123 [22]

Answer:

c) 10%; stays the same. 

Explanation:

Elasticity of supply measures the degree of responsiveness of quantity supplied to changes in price.

Supply is perfectly inelastic if a change in price has no effect on quantity supplied. The quantity supplied remains unchanged despite changes in price.

I hope my answer helps you

7 0
3 years ago
The four people below have the following investments. Invested Amount Interest Rate Compounding Jerry $ 11,400 12% Quarterly Ela
Vinvika [58]

Jerry's future value is $24,978.80

Elaine  future value is  19,352.40

George future value is 31,443.62

Kramer  future value is 28,022.87

Kramer has the greatest investment accumulation because he earned the highest interest.

<h3>What are the future values?</h3>

The formula for calculating future value:

FV = P (1 + r)^nm

  • FV = Future value
  • P = Present value
  • R = interest rate
  • m = number of compounding
  • N = number of years

Jerry : 11,400 x ( 1 + 0.12/4)^(4 x 5) = 24,978.80

Elaine : 14,400 x (1 + 0.06/2)^(2 x 5) = 19,352.40

George: 21,400 x (1.08)^5 = 31,443.62

Kramer : 17,400 x (1.10)^5 = 28,022.87

To learn more about future value, please check: brainly.com/question/18760477

#SPJ1

3 0
2 years ago
Li Meng purchased a property that had been owned by the same man for more than 40 years. The title search was clean. In the spri
stira [4]

The covenant is against encumbrances.

<h3><u>what is an encumbrance?</u></h3>

A claim made against a piece of property by someone who isn't the owner is called an encumbrance.

  • Encumbrance may affect the property's ability to be transferred and limit its free use until the encumbrance is removed.
  • Real estate is subject to the most prevalent kinds of encumbrances, such as mortgages, easements, and property tax liens.

The previous property owner failed to disclose to Li Meng that there was an easement across the property.

Learn more encumbrance with the help of the following link:

brainly.com/question/14844424?referrer=searchResults

#SPJ4

6 0
1 year ago
Revenue on account amounted to 54,000. Cash collections of accounts receivable amounted to $2,300. Expenses for theperiod were 5
Georgia [21]

Answer:

Option (D) is correct.

Explanation:

Given that,

Revenue on account = $54,000

Cash collections of accounts receivable = $2,300

Expenses for the period = $52,100

company paid dividends = $450

Net income for the period:

= Revenue on account - Expenses for the period

= $54,000 -  $52,100

= $1,900

Therefore, the net income for the period is $1,900.

8 0
3 years ago
Requirement 1. Identify each account as an asset​ (A), liability​ (L), or equity​ (E). Asset (A), Liability (L), or Equity (E)?
motikmotik

Answer:

a. Interest Revenue

Identification: Asset

Increases with: Debit

Normal Balance: Debit

b. Accounts Payable

Identification: Liability

Increases with: Credit

Normal Balance: Credit

c. Calhoun, Capital

Identification: Equity

Increases with: Credit

Normal Balance: Credit

d. Office Supplies

Identification: Asset

Increases with: Debit

Normal Balance: Debit

e. Advertising Expense

Identification: Liability

Increases with: Credit

Normal Balance: Credit

f. Unearned Revenue

Identification: Liability

Increases with: Credit

Normal Balance: Credit

g. Prepaid Rent

Identification: Asset

Increases with: Debit

Normal Balance: Debit

h. Utilities Expense

Identification: Liability

Increases with: Credit

Normal Balance: Credit

i. Calhoun, Withdrawals

Identification: Equity

Increases with: Debit

Normal Balance: Debit

j. Service Revenue

Identification: Asset

Increases with: Debit

Normal Balance: Debit

5 0
3 years ago
Other questions:
  • According to the table what is Omars bank balance?
    7·2 answers
  • What is the study of the ways in which money is created and used in society?
    6·1 answer
  • Jim is researching different sources to fund his college education. Jim is torn between a federal loan and a private loan. With
    7·1 answer
  • Earnings per share (EPS)
    8·1 answer
  • Swift Company purchased a machine on January 1, 2010, for $500,000. At the date of acquisition, the machine had an estimated use
    9·1 answer
  • On March 15, 20X7, Barrel Company paid property taxes of $120,000 on its factory building for calendar year 20X7. On July 1, 20X
    8·1 answer
  • Suppose that, in a competitive market without government regulations, the equilibrium price of donuts is $1.00 each.Complete the
    9·1 answer
  • Bryant leased equipment that had a retail cash selling price of $750,000 and a useful life of six years with no residual value.
    9·1 answer
  • Who can you pay with PayPal?
    5·1 answer
  • What are the two most important factors in calculating your credit score?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!