Homework Answers
| Account Titles and Explanation | Debit | Credit |
| Cash | 1,25,000 | |
| Sales Revenue | 1,25,000 | |
| Cash | 1,28,000 | |
| Sales Revenue | 1,25,000 | |
| Unearned Warranty Revenue | 3,000 | |
| Note: Dieker should recognize $1,500 of warranty revenue in 2019 and 2020. | ||
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Exercise 130 On December 31, 2017, Dieker Company sells equipment to Tabor Inc. for $125,000. Dieker...
Exercise 18-26 On January 2, 2017, Shamrock Company sells production equipment to Fargo Inc. for $48,000....
Exercise 18-26 On January 2, 2017, Shamrock Company sells production equipment to Fargo Inc. for $48,000. Shamrock includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2017. During 2017, Shamrock incurs costs related to warranties of $870. At December 31, 2017, Shamrock estimates that $620 of warranty costs will be incurred in the second year of the warranty. Prepare the journal entry to record this...
On December 31, 2020, Crane Company sells production equipment to Larkspur Inc. for $53,700. Crane includes...
On December 31, 2020, Crane Company sells production equipment to Larkspur Inc. for $53,700. Crane includes a one-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2020. Crane estimates the prices to be $49,800 for the equipment and $3,900 for the cost of warranty. Are the sale of the equipment and the warranty separate performance obligations within the contract? SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare...
On January 2, 2020, Carla Company sells production equipment to Fargo Inc. for $48,000. Carla includes...
On January 2, 2020, Carla Company sells production equipment to Fargo Inc. for $48,000. Carla includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Carla incurs costs related to warranties of $930. At December 31, 2020, Carla estimates that $610 of warranty costs will be incurred in the second year of the warranty. Prepare the journal entry to record this transaction on...
On January 2, 2020, Blue Company sells production equipment to Fargo Inc. for $54,000. Blue includes...
On January 2, 2020, Blue Company sells production equipment to
Fargo Inc. for $54,000. Blue includes a 2-year assurance warranty
service with the sale of all its equipment. The customer receives
and pays for the equipment on January 2, 2020. During 2020, Blue
incurs costs related to warranties of $930. At December 31, 2020,
Blue estimates that $680 of warranty costs will be incurred in the
second year of the warranty.
Prepare the journal entry to record this transaction on...
On January 2, 2020, Kingbird Company sells production equipment to Fargo Inc. for $55,000. Kingbird includes...
On January 2, 2020, Kingbird Company sells production equipment to Fargo Inc. for $55,000. Kingbird includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Kingbird incurs costs related to warranties of $940. At December 31, 2020, Kingbird estimates that $640 of warranty costs will be incurred in the second year of the warranty. Prepare the journal entry to record this transaction on...
Question 12 On January 2, 2020, Coronado Company sells production equipment to Fargo Inc, for $48,000....
On January 2, 2020, Coronado Company sells production equipment to Fargo Inc, for $48,000. Coronado includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Coronado incurs costs related to warranties of $900. At December 31, 2020, Coronado estimates that $620 of warranty costs will be incurred in the second year of the warranty. Prepare the journal entry to record this transaction on January...
Problem 13-10 Tamarisk Inc. sells portable computer equipment with a two-year warranty contract that requires the...
Problem 13-10 Tamarisk Inc. sells portable computer equipment with a two-year warranty contract that requires the corporation to replace defective parts and provide the necessary repair labour During 2017, the corporation sells for cash 383 computers at a unit price of $2,500. Based on experience, the two-year warranty costs are estimated to be $168 for parts and $172 for labour per unit. (For simplicity, assume that all sales occurred on December 31, 2017.) The warranty is not sold separately from...
Presented below is information related to equipment owned by Sandhill Company at December 31, 2017. Cost...
Presented below is information related to equipment owned by Sandhill Company at December 31, 2017. Cost $6,960,000 Accumulated depreciation to date 696,000 Expected future net cash flows 4,640,000 Fair value 3,248,000 Assume that Sandhill will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry is required,...
*Exercise 11-16 Presented below is information related to equipment owned by Ivanhoe Company at December 31,...
*Exercise 11-16 Presented below is information related to equipment owned by Ivanhoe Company at December 31, 2017. Cost Accumulated depreciation to date Expected future net cash flows Fair value $10,620,000 1,180,000 8,260,000 5,664,000 Assume that Ivanhoe will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry...
Exercise 11-16 Presented below is information related to equipment owned by Vaughn Company at December 31,...
Exercise 11-16 Presented below is information related to equipment owned by Vaughn Company at December 31, 2017 Cost Accumulated depreciation to date 1,010,000 Expected future net cash flows Fair value $9,090,000 7,070,000 4,848,000 Assume that Vaughn will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry...
On December 31, 2020, Crane Company sells production equipment to Larkspur Inc. for $53,700. Crane includes a one-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2020. Crane estimates the prices to be $49,800 for the equipment and $3,900 for the cost of warranty. Are the sale of the equipment and the warranty separate performance obligations within the contract? SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare...
On January 2, 2020, Carla Company sells production equipment to Fargo Inc. for $48,000. Carla includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Carla incurs costs related to warranties of $930. At December 31, 2020, Carla estimates that $610 of warranty costs will be incurred in the second year of the warranty. Prepare the journal entry to record this transaction on...
On January 2, 2020, Blue Company sells production equipment to
Fargo Inc. for $54,000. Blue includes a 2-year assurance warranty
service with the sale of all its equipment. The customer receives
and pays for the equipment on January 2, 2020. During 2020, Blue
incurs costs related to warranties of $930. At December 31, 2020,
Blue estimates that $680 of warranty costs will be incurred in the
second year of the warranty.
Prepare the journal entry to record this transaction on...
On January 2, 2020, Kingbird Company sells production equipment to Fargo Inc. for $55,000. Kingbird includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Kingbird incurs costs related to warranties of $940. At December 31, 2020, Kingbird estimates that $640 of warranty costs will be incurred in the second year of the warranty. Prepare the journal entry to record this transaction on...
On January 2, 2020, Coronado Company sells production equipment to Fargo Inc, for $48,000. Coronado includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Coronado incurs costs related to warranties of $900. At December 31, 2020, Coronado estimates that $620 of warranty costs will be incurred in the second year of the warranty. Prepare the journal entry to record this transaction on January...
Problem 13-10 Tamarisk Inc. sells portable computer equipment with a two-year warranty contract that requires the corporation to replace defective parts and provide the necessary repair labour During 2017, the corporation sells for cash 383 computers at a unit price of $2,500. Based on experience, the two-year warranty costs are estimated to be $168 for parts and $172 for labour per unit. (For simplicity, assume that all sales occurred on December 31, 2017.) The warranty is not sold separately from...
*Exercise 11-16 Presented below is information related to equipment owned by Ivanhoe Company at December 31, 2017. Cost Accumulated depreciation to date Expected future net cash flows Fair value $10,620,000 1,180,000 8,260,000 5,664,000 Assume that Ivanhoe will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry...
Exercise 11-16 Presented below is information related to equipment owned by Vaughn Company at December 31, 2017 Cost Accumulated depreciation to date 1,010,000 Expected future net cash flows Fair value $9,090,000 7,070,000 4,848,000 Assume that Vaughn will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry...
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