Superior Skateboard Company, located in Ontario, is preparing
adjusting entries at December 31, 2020. An analysis reveals the
following:
ANSWER:
Account Title | Debit | Credit | ||||
a | Warranty Expense | $19,152 | (9%*7600*$28) | |||
Accrued Warranty Liability | $19,152 | |||||
b | No Entry is needed | |||||
c | Cash | $2,210,000 | ||||
Sales Revenue | $2,210,000 | |||||
Cost of goods sold | $1,657,500 | (75%*2,210,000 ) | ||||
Inventory | $1,657,500 | |||||
d | Unearned Revenue | $106,000 | ||||
Sales Revenue | $106,000 | |||||
================
DEAR STUDENT,
IF YOU HAVE ANY QUERY PLEASE ASK ME IN THE COMMENT BOX,I AM HERE TO HELP YOU.PLEASE GIVE ME POSITIVE RATING..
****************THANK YOU****************
All entries dated December 31, 2020.
a. |
Warranty Expense……………………………………… |
19,152 |
|
Estimated Warranty Liability............................................ |
19,152 |
||
To record warranty expense; |
b.
No adjusting entry
c.
Cash........................................................................................... 2,395,600
Sales Revenue................................................................. 2,210,000
HST Payable.................................................................... 275,600
To record sales plus HST: $2,210,000 × 13% = $275,600.
Cost of Goods Sold................................................................... 1,378,000
Merchandise Inventory..................................................... 1,378,000
To record cost of sales: $2,120,000 × 65% = $1,378,000.
d.
Unearned Product Revenue .................................................................. 97,000
Earned Product Revenue......................................... 97,000
To record earned portion of unearned revenue.
Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31, 2020. An analysis...
Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31, 2020. An analysis reveals the following a. During December, Superior sold 6,900 skateboards that carry a 60 day warranty. The skateboard sales totalled $394,000. The company expects 5% of the skateboards will need repair under warranty and it estimates that the average repair cost per unit will be $42 b. A disgruntled employee is suing the company legal advisers believe that it is probable that Superior will...
i need help with c and d
Exercise 10-18 Various liabilities 102,4 CHECK FIGURE: C. HST Payable = $275,000 Superior Skateboard Company, locutin Ontario, is preparing adjusting entries at December 31, 2020. An analysis reveals the following: a. During December, Superior sold 0,500 skateboards that carry a 60-day warranty. The skateboard sales totalled $390,000. The company expects 8% of the skateboards will need repair under warranty and it estimates that the average repair cost per unit will be $38, b....
please answer 8&9
00 Exercise 9-12 Accounting for estimated liabilities LO P4 Listed below are a few transactions and events of Maxum Company - 1. Employees eam vacation pay at a rate of one day per month. During December 24 employees qualify for one vacation day cach. Thelt average daily wage is $10 per employee 2. During December, Maxum Company sold 3700 units of a product that carries a 60-day warranty, December sales for this product total $133,000. The company...