Question

The following transactions of Brooks Garrett occurred during 2018: (Click the icon to view the transactions.) Requirements 1. Journalize required transactions, if any, in Garret's general journal. Explanations are not required. 2. What is the balance in Estimated Warranty Payable assuming a beginning balance of $0? Requirement 1. Journalize required transactions, if any, in Garret's general journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries. For transactions that do not require an entry, make sure to select "No entry required" in the first cell in the "Accounts" column and leave all other cells blank.) Apr. 30: Garret is party to a patent infringement lawsuit of $230,000. Garret's attorney is certain it is remote that Garret will lose this lawsuit. Date Accounts Debit Credit Apr. 30 More Info Apr. 30 Garret is party to a patent infringement lawsuit of $230,000. Garret's attorney is certain it is remote that Garret will lose this lawsuit. Jun. 30 Estimated warranty expense at 2% of sales of $400,000. Jul. 28 Warranty claims paid in the amount of $5,800. Sep. 30 Garret is party to a lawsuit for copyright violation of $120,000. Garret's attorney advises that it is probable Garret will lose this lawsuit. The attorney estimates the loss at $120,000. Dec. 31 Garret estimated warranty expense on sales for the second half of the year of $520,000 at 2%. Print Done

Answer 1

Debit credit Apr:30 No Entry Required! $ 8000 $8000 Jun:30 Warranty Eupense Alc To Estimated warranty Payable. Ale Jul.28 Estimeted Warranty Ayable Ak. To Cash Alc $5.800 $5,800 Sep30 Lawsuit Euperses k. $1,20,00. 1,20000 To Estimated lawsvit liability AK. $8,200 Dec.31 Warrantty Eupense Ala. $8,200 To Esimaed Warkunty PayableAlc ((5,20000x2%)- (8,000-5,800l Balapce in Estimated Warranty PayableAC $10,400 will be C8.000 + 8,200-5,800) Dec-31 Thanks. "Scanned with CS CamScanner