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Exercises/Short Answer Warranty expense for a company was $350,000 for the year. They began the year with an...

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Accounting

Exercises/ShortAnswer

  1. Warranty expense for a company was $350,000 for the year. Theybegan the year with an $1,200,000 balance in their Allowance forwarranty costs account, and ended the year with $1,175,000. Howmuch was incurred for actual warranty costs during the year?

  1. Please state the two conditions that must be met in order for acompany to accrue a loss contingency

  1. On November 1, 2018 Daniels Inc. borrowed $200,000 under a 6%promissory note that was due on April 30, 2019.   Recordto journal entries to accrue interest on this note as of December31, 2018, and to pay it off on April 30, 2019.

  1. Porter Co. recorded a cash sale of $250 that was subject tostate sales tax rate of 10%. Prepare the journal entry to recordthis sale.

  1. On July 31, 2016 Ernst Corporation called (i.e. redeemed)$10,000,000 par value of bonds payable at 103% of par value. Atthat time the bonds had an unamortized discount of $145,000.Prepare the journal entry to redeem these bonds.

Answer & Explanation Solved by verified expert
3.9 Ratings (802 Votes)
1 Warranty expense for a company in current year is 350000 Opening balance in their allowance is 1200000 Closing balance in the end of year is 1175000 Actual warranty costs during the year is 325000 12000003500001175000 2 journal entries to accrue interest on this note as of    See Answer
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