Question

Remaining time: 72:12 Question 3 McBride Industries completed the following transactions during 2016: Made sales of $10,000. McBride estimates that Oct. 1 warranty expense is 5% of sales. (Record only the warranty expense.) Oct. 24 Paid $250 to satisfy warranty claims. Dec. Estimated vacation benefits expense to be $2,350. 31 Dec. 31 McBride expected to pay its employees a 4% bonus on net income after deducting the bonus. Net income for the year is $25,000. Journalize the transactions (explanations are not required). Round to the nearest dollar. Your answer:

Answer 1

Journal entries are as follows:

Note: It is given that explanations are not required.

Date	Account and Explantion	Debit($)	Credit($)
Oct.1	Warranty Expenses($10,000 * 5%)	500
	Warranty Payable		500
Oct. 24	Warranty Payable	250
	Cash		250
Dec.31	Vacation Benefits Expenses	2,350
	Estimated Vacation Benefits Payable		2,350
Dec.31	Employee Bonus Expenses ($25,000 *0.04 /1.04)	962
	Employee Bonus Payable		962