User Account

All Pages

What are the warranty expense balances

Assignment Help Accounting Basics
Reference no: EM131764991

Question - Warranties.

Miley Equipment Company sells computers for $1,500 each and also gives each customer a 2-year warranty that requires the company to perform periodic services and to replace defective parts. During 2010, the company sold 700 computers. Based on past experience, the company has estimated the total 2-year warranty costs as $30 for parts and $60 for labor. (Assume sales all occur at December 31, 2010.)

In 2011, Miley incurred actual warranty costs relative to 2010 computer sales of $10,000 for parts and $18,000 for labor.

Instructions

(a) Under the expense warranty treatment, give the entries to reflect the above transactions (accrual method) for 2010 and 2011.

(b) Under the cash basis method, what are the Warranty Expense balances for 2010 and 2011?

(c) The transactions of part (a) create what balance under current liabilities in the 2010 balance sheet?

Reference no: EM131764991

Questions Cloud

Engage in the systematic study of it ethics : Should we engage in the systematic study of IT ethics the same as we engage in the study of medical ethics or business ethics? Why or why not?
What type of situations might an adult experience : How has this attachment style affected your past and/or current relationships? Its hard for me to be in long term relationships
Describe thoughts concerning aspect of consumer behavior : Describe your thoughts concerning this aspect of consumer behavior and its consequences within society or a specific social group.
Learned about the active directory : Topic #1) For the past 6 weeks, we have learned about the Active Directory, Group Policy, and DNS.
What are the warranty expense balances : Question - Warranties - Under the cash basis method, what are the Warranty Expense balances for 2010 and 2011
What is the result if he lives to receive payments : (b) What is the tax effect for Senior if he dies after receiving only 10 payments, What is the result if he lives to receive 17 payments
Threats of cyber warfare and cyberterrorism : How real are the threats of cyber warfare and cyberterrorism?
Devise a way to reduce intergroup conflict : Discuss the different strategies to reduce intergroup conflict found in your text and the Hewstone article.
Describe the method and real accounts : Because merchants are in many places among the most common type of business, and because there are special issues in accounting for merchandising operations.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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