Those most responsible for the major policy decisions of a corporation are the:

Leppard Corporation sells DVD players. The corporation also offers its customers a 2-year warranty contract. During 2014, Leppar

maks197457 [2]

Answer:

A. Dr Cash $2,184,000

Cr Unearned warranty revenue $2,184,000

B. Dr Warranty expense $182,000

Cr Inventory $182,000

C. Dr Unearned warranty revenue 364,000

Cr Warranty revenue 364,000

Explanation:

a. Preparation of thr Leppard’s journal entries for the sale of contracts

Dr Cash $2,184,000

($20,000 x$109.20 each)

Cr Unearned warranty revenue $2,184,000

(Being to record sale of contracts)

b. Preparation of Leppard’s journal entries for the cost of servicing the warranties.

Dr Warranty expense $182,000

Cr Inventory $182,000

(Being to record Cost of servicing warranty)

c. Preparation of Leppard’s journal entries for the recognition of warranty revenue.

Dr Unearned warranty revenue 364,000

Cr Warranty revenue 364,000

(Being to record recognized warranty revenue)

Calculation for recognized warranty revenue

First step is to calculate the Total expected cost

Total expected cost = 182,000 + 910,000

Total expected cost= 1,092,000

Now let calculate warranty revenue

Warranty revenue=182,000/ 1,092,000 x $2,184,000

Warranty revenue = 364,000

6 0

3 years ago

A company purchased $60,000 of 5% bonds on May 1 at par value. The bonds pay interest on March 1 and September 1. The amount of

Readme [11.4K]

Answer:

The interest accrued is $2,500.

Explanation:

The income accrued will arise after the date of purchase (May 1) of the bonds to the ending date of the accounting period (December 31). This duration is equal to 8 months.`

For the first four months (May 1 to September 1) the income accrued will be the income received semiannually for these four month:

Income Accrued = $60,000 * 6/12 * 5% = $1,500 Because the payment that will be received will be $1000 which belongs to 6 months starting from March 1 and ending at September 1.

And for the remainder 4 months (September 1 to December 31)

Income Accrued = $60,000 * 4/12 * 5% = $1,000

So the total income accrued for the year will be $2,500

4 0

3 years ago

The permanent school fund is managed primarily by what entity?

Elena-2011 [213]

<span>The permanent school fund is managed primarily by what entity? The state and board of education. The state will determine what schools receive funding based on different attributes that each have. Depending on the size of the school, student body and teachers, the programs the school has and where the money is needed (possible expansions) allows for funding to be dispersed appropriately. </span>

7 0

3 years ago

All of the following would be defined as exempt transactions EXCEPT :________

ella [17]

Answer:

I don't even know maybe A

7 0

3 years ago

On January 1, 2020, Novak Corp. had inventory of $56,500. At December 31, 2020, Novak had the following account balances.

salantis [7]

Answer:

Gross Profit ⇒ $296,500

Operating expenses ⇒ $153,500

Explanation:

Gross Profit;

= Net sales - Cost of Goods sold

Net sales = Sales revenue - sales discounts - sales returns and allowances

= 807,000 - 6,000 - 10,900

= $790,100

Cost of Goods sold

= Opening balance + Purchases + Freight-in - Purchase discounts - Purchase returns and allowances -closing balance

= 56,500 + 509,500 + 4,800 - 8,000 - 2,700 - 66,500

= $493,600

Gross Profit = 790,100 - 493,600

= $296,500

Operating Expense

Net Income = Gross profit - operating expenses

143,000 = 296,500 - operating expenses

Operating expenses = 296,500 - 143,000

= $153,500

6 0

3 years ago