Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. best companystarted its business in 2020 and sold

Best Companystarted its business in 2020 and sold electronics worth $165,000 in 2020. The company...

80.2K

Verified Solution

Question

Accounting

  1. Best Companystarted its business in 2020 and sold electronics worth $165,000 in 2020. The company provided a 2- year limited warranty for all sales. As per company estimate warranty costs would be 1% of sales in the first year and 2.5% of sales in the second year. By end of 2020Best Company had already spent $1,250 on warranty repairs. Prepare all journal entries related to the warranty for 2020. Also Calculate the amount of Estimated Warranty Payable to be reported on the Balance Sheet on Dec 31, 2020 (10 marks)

  1. On January 1, 2020, Best Company issued $65,000, 5-year bonds, with coupon rate of 7%, paid semi-annually. Prepare the necessary journal entries to record the issue of the bond at face value and the payment of the first coupon on June 30, 2020. (6 marks)

  1. $25,000 bonds of Best Company are quoted at 103.40. Are they selling at a discount or at premium? How much will they sell for?(4 marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students