Answer:1. Make provision for warranty claims.
2. Disclosure of contingent liability
3. No cost should be recorded.
Explanation:
Warranty is an assurance made by firms to make good any agreed loss that is incurred by the customers in usage of goods and services whiting the period of the warranty. Since an estimation can be made based on firms history of sales a provision has to be made for possible warranty.
Since it's only probably that a loss will be Incurred by the firm by going into the contract and the financial statement has not been issue the firm should made a contingent liability disclosure in the report.
The self insurance is not a contract with a third party, in this vein no cost will be accrued until the loss is actually suffered.
Answer:
Entries are given below
Explanation:
Requirement A.
On January 1, 2020 Carrow purchased held to maturity investment, $60,000 of the 8% 5year bonds of Harrison, Inc for $65,118
Entry DEBIT CREDIT
Held-to-maturity securities $65,118
cash $65,118
Requirement B.
The receipt of semiannual interest and premium amortization
Entry DEBIT CREDIT
cash (60,000 x 8% x 6/12) $2,400
held to maturity sercurities $446
interest revenue(65,118 x.6% x6/12) $1,954
MONEY MONEY MONEY MONEY MONEY MONEY MONEY MONEY MONEY
Answer:
$ 2,209,797.96
Explanation:
Given:
Salary = $100,000
Salary investment rate = 13%
Salary increase rate(g) = 5%
number of year = 25
Annual rate of return(i) = 11%
Calculation:
Salary invested = $100,000*13% = $13,000
calculation of present worth
![P=A[\frac{1-(1+g)^n(1+i)^{-n}}{i-g}] \\P=13000[\frac{1-(1+0.05)^{25}(1+0.11)^{-25}}{0.11-0.05}] \\P=13000[\frac{1-(1.05)^{25}(1.11)^{-25}}{0.06}] \\P=13000[\frac{1-(3.386354)(0.073608086)}{0.06}]\\\\P=13000[\frac{1-0.249263}{0.06}]\\\\ P=13000[12.5122827]\\\\\\P= 162,659.675](https://tex.z-dn.net/?f=P%3DA%5B%5Cfrac%7B1-%281%2Bg%29%5En%281%2Bi%29%5E%7B-n%7D%7D%7Bi-g%7D%5D%20%5C%5CP%3D13000%5B%5Cfrac%7B1-%281%2B0.05%29%5E%7B25%7D%281%2B0.11%29%5E%7B-25%7D%7D%7B0.11-0.05%7D%5D%20%5C%5CP%3D13000%5B%5Cfrac%7B1-%281.05%29%5E%7B25%7D%281.11%29%5E%7B-25%7D%7D%7B0.06%7D%5D%20%5C%5CP%3D13000%5B%5Cfrac%7B1-%283.386354%29%280.073608086%29%7D%7B0.06%7D%5D%5C%5C%5C%5CP%3D13000%5B%5Cfrac%7B1-0.249263%7D%7B0.06%7D%5D%5C%5C%5C%5C%20P%3D13000%5B12.5122827%5D%5C%5C%5C%5C%5C%5CP%3D%20162%2C659.675)
