6. A. Tangible property, plant and equipment, other than land.
7. B. The matching principle.
8. B. Double declining balance.
9. D. Annual depreciation expense is decreased for the remaining years of the asset's life.
10. C. Double declining balance
11. D. $ 1,000 loss.
Book value at end of first year = $ 12,000 - $ 2,000 = $ 10,000
Gain ( loss ) on disposal = $ 9,000 - $ 10,000 = $ ( 1,000) loss.
12. C. Equal to the salvage value.
13. B. No gain or loss.
14. D. $ 425,000.
15. D. $ 50,000.
16. B.
17. D. Interest payable is credited.
18. A. Unearned revenue.
26. C. A debit to estimated warranty payable for $ 24,000.
27. B. $ 1,050 credit.
28. C. $ 504. 08
29. D. Cash receipts from customers should be separated from the accounting for accounts receivable.
30. C. To separate the duties of human resources personnel and accounting personnel.
Just want to double check my answers. and it its wrong, which one is the corrwcr...
answer following questions. want to ensure my answers are correct. record these sales? A) A debit to Sales revenue for $215,000 B) A credit to Accounts receivable for $215,000 e) A dcbit to Sales tax payable for $15.050 A debit to Accounts receivable for $230.050 20) A $20,000, 3-month, 8% note payable was issued on November 1, 2015. What inforest on December 31, 2015? A) $200 P$267 C) $133 D) $800 Issued on November 1, 2015. What is the amount...
Recording Assurance-Type Warranty Liability Finisher Inc. sells merchandise for $450,000 in 2020 that includes a three-year limited warranty, Warranty costs are estimated to be 19 of sales. The company incurred actual costs of $1,440 in 2020 related to the warranties. a. Record the warranty accrual at the time of sale in 2020. b. Record the adjustment to the warranty accrual for actual warranty costs in 2020. Account Name Cr. . 0 0 D 0 b. 0 0 E pepe cen...
Recording and Reporting Warranties During 2020, Ward Company introduced a new product carrying a two-year warranty against defects, which is included in the selling price of the product. The estimated warranty costs are 2% of sales within the first 12 months following the sale and 4% in the second 12 months following the sale. Sales and actual warranty expenditures for the years ended December 31, 2020, and 2021 are: Actual Warranty Sales Expenditures 2020 $600.000 $9.000 2021 1.000.000 30,000 $1,600.000...
Recording and Reporting Warranties During 2020, Ward Company introduced a new product carrying a three-year warranty against defects, which has a separate purchase price. The company collected $20,000, and $35,000 for this extended warranty feature in the years 2020 and 2021, respectively. The company uses straight-line recognition of warranty revenue. The estimated warranty costs are 2% of sales within the first 12 months following the sale and 44 in the second 12 months following the sale. For simplification, assume that...
QUESTION 6 An asset was purchased for $33,000 on January 1, 2019. The asset's estimated useful life was five years, and its residual value was $4000. The straight- method of depreciation was used. Calculate the gain or loss if the asset is sold for $26,000 on December 31, 2019, the last day of the accounting period $1200 loss 5600 gain $1200 gain no gain or no loss QUESTION 7 Cycle Sales Company offers warranties on all their bikes. They estimate...
We are hired as consultants to assist Arctica Co. in accounting for its warranty expenses. Arctica offers a one-year warranty covering parts on each snowmobile it sells. The following Tableau Dashboard is provided to assist us. Estimated Warranty Expense vs. Actual Warranty Claims Purple Graph Actual warranty claim: $17,660 (1 year ago) Actual warranty claim: $21,660 (2 years ago) Actual warranty claim: $13,070 (3 years ago) Actual warranty claim: $12,122 (4 years ago) Orange Graph Estimated warranty expense: $14,800 (1...
Which of the following is a characteristic of both the expense approach for assurance-type warranties and the sales approach for service-type warranties? ut of Select one: O a. Estimated liability under warranties b. Unearned warranty revenue c. Warranty revenue Od. Warranty expense
Which of the following is not a current liability? Sales tax payable; Payroll taxes payable; c. Unearned revenues; D. Allowance for doubtful accounts. B. Which of the following is not a current liability? Discount on Bonds Payable due in 7 years; Wages Payable; Estimated Warranty Payable for items sold with a one year warranty: Out of court litigation settlement liability due to be paid next month. B. Page 2 of 6 Which of the following is not a payroll tax...
An asset was purchased for $30,000 on January 1, 2019. The asset's estimated useful life was five years, and its residual value was $4,000. The straight – line method of depreciation was used. Calculate the gain or loss if the asset is sold for $21,000 on December 31, 2019, the last day of the accounting period. A. $3,800 loss B. $1,900 gain C. $3,800 gain D. no gain or no loss Gulfcoast Company purchased a van on January 1, 2019,...
1. Tamarisk’s Steelers Inc. (MSI) is a steel manufacturing company located in Ontario. On November 1, 2018, MSI acquired land on which it constructed a facility for steel manufacturing purposes. Since its manufacturing process produces excessive waste, the government of Ontario has imposed a requirement for MSI to clean up property. As part of its agreement with the province of Ontario, MSI is allowed to operate on this site for only 15 years after which time MSI estimates it will...