User Account

All Pages

What amount should cupola report as a liability at december

Assignment Help Accounting Basics
Reference no: EM13995081

Cupola Awning Corporation introduced a new line of commercial awnings in 2011 that carry a two-year warranty against manufacturer's defects. Based on their experience with previous product introductions, warranty costs are expected to approximate 3% of sales. Sales and actual warranty expenditures for the first year of selling the product were:

Required:

1. Does this situation represent a loss contingency? Why or why not? How should Cupola account for it?

2. Prepare journal entries that summarize sales of the awnings (assume all credit sales) and any aspects of the warranty that should be recorded during 2011.

3. What amount should Cupola report as a liability at December 31, 2011? 

Reference no: EM13995081

Questions Cloud

Partner shin received a distribution : Partner Shin received a distribution of $60,000 cash from the Shamrock Partnership in complete liquidation of his partnership interest.  If Shin's outside basis immediately before the distribution was $90,000, and if the partnership has a § 754 elect..
Kumar''s interest in the equal moss partnership : Kumar's interest in the equal Moss Partnership is sold to Charles for $100,000 cash.  On the date of the sale, the partnership tax balance sheet and the agreed fair market values were as follows.
Suitable for producing camcorders than for producing trucks : Suppose Bulgaria produces only camcorders and trucks. The resources that are used in the production of these two goods are specialized—that is, some inputs are more suitable for producing camcorders than for producing trucks, whereas others are more ..
Harvey and jeffrey were the only partners in the current yea : On December 31 of last year, Harvey gave his son, Jeffrey, a gift of a 30% interest in a partnership in which capital is a material income-producing factor.  For the current calendar year, the partnership's ordinary income was $150,000.  Harvey and J..
What amount should cupola report as a liability at december : Does this situation represent a loss contingency? Why or why not? How should Cupola account for it?
Bob owned a duplex used as rental property : Part 4.  Bob owned a duplex used as rental property.  The duplex had an adjusted basis to Bob of $86,000 and a fair market value of $300,000.  Bob transferred the duplex to his brother, Carl, in exchange for a triplex that Carl owned.  The triplex ha..
Service business not be qualified to use the cash method : If a taxpayer has a service business and sells products but it meets the $1 million average gross receipts exception for Rev. Procedure 2001-10 is it still subject to Rev. Procedure 2002-28? If it does then under what circumstance would the service b..
Determine the amount of cash collected during 2014 from sale : During 2014, Olson recorded $80,000 of sales on credit and wrote off $4,000 of uncollectible accounts.. Determine the amount of cash collected during 2014 from sales on credit. Determine the amount of bad debts expense for 2014.
Evaluate whether the home renovation tax credit : Evaluate whether the  home renovation tax credit is a sensible policy in light of the purpose, costs and benefits as well as the effects of the tax expenditure, especially in light of its distributional outcomes

Reviews

Write a Review

Accounting Basics Questions & Answers

  Potential tax problem with sale of land

Nall had purchased the land for $62,000. Write a memorandum to the controller of Nall, Inc., explaining the potential tax problem with the sale of the land to Trebor.

  The little rock division of classics companies currently

the little rock division of classics companies currently reports a profit of 3.6 million. divisional invested capital

  Set of financial statements as possible

It has been said that many corporate executives seemed to believe that it was their job not to produce accurate financial statements for the auditors to certify, but rather to bully the auditors into certifying as aggressive a set of financial sta..

  Article analysis using macroeconommic indices

Conduct an analysis of recent article and provide their evaluation and outcome expectations in written paper of 1500-2500 words that discusses:

  Account for basket purchase lo 1 warehouse supply

account for basket purchase. lo 1. warehouse supply corporation obtained land a factory and manufacturing equipment in

  Sec reporting requirements

Based on your review of the SEC reporting requirements as outlined in the Sarbanes-Oxley Act, assess the adequacy of the reporting requirements for providing credible financial and operating information for company stakeholders and potential inves..

  What should the company report on its balance sheet

What should the company report on its balance sheet at December 31, 2007, as accounts receivable before the allowance for doubtful accounts?

  Determine the amount of dividends paid each year to each of

yorks outstanding stock consists of 57000 shares of cumulative 9.00 preferred stock with a 10 par value and also 142500

  Is it another network like the internet or a service

What is the Web? Is it another network like the Internet or a service that runs on the Internet?

  Prepare all appropriate journal entries related to the

as a long-term investment at the beginning of the fiscal year florists international purchased 30 of nursery supplies

  List major points in the slides

Prepare a 7- to 9-slide Microsoft® PowerPoint® presentation illustrating your responses to the questions posed by the assigned case study. List major points in the slides. Include detailed explanations in the speaker notes section that correlate to..

  The conversion option allowed the holder of each

On January 1, 2009, when its $30 par value common stock was selling for $80 per share, a corporation issued $10 million of 10% convertible debentures due in 10 years.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd