Answer:
Answer 1. Warranty expense to be recognized is ($11,000*0.04)=$440
Answer 2. Warranty liability at end of year one is $440
Answer 3. Warranty liability at the end of year two is ($440-$130)=$310
Answer 4.
Cash $11,000
To sales $11,000
(sale of copier recorded)
Warranty expense $440
To Warranty liability $440
(Warranty recorded at the end of year 1)
Warranty liability $130
To inventory $130
(Repairs done to copier)
This a simple interest question with the principal = $25,000 time = 90 days and rate = 7%.
The simple interest in an investment after t days is given by PRT / (100 x 360). where P = $25,000 R = 7% and T = 90
S.I = (25000 x 7 x 90) / (360 x 100) = 15750000 / 36000 = 437.5
Therefore, the amount of interest Jasper will collect is $437.50
Increase in money supply will result to result to lower interest rates. These will encourage individuals and business to avail of loans since interest rates are low. However, proper computation must be made in order to determine the level of increase in money supply. Unchecked increase in money supply may result to inflation.
Decrease in money supply will result to higher interest rates. Higher interest rates will encourage individuals or businesses to deposit their money in the banks because their deposits will earned high interests.
Answer: False
Explanation:
The revenue account for a Retail Merchandising Business is also known as the Sales Account.
When goods are sold they are credited to the Sales Account and it is no different here.
Therefore, When a Retail Merchandising Business sells goods to a customer the amount of the sold merchandise is credited to the Sales Account which makes the above statement false.
