Exercise 18-26 (Part Level Submission) On January 2, 2020, Coronado Company sells production equipment to Fargo...
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...
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...
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 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, 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, 2017, Riverbed Company sells production equipment to Fargo Inc. for $54,000. Riverbed 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, Riverbed incurs costs related to warranties of $940. At December 31, 2017, Riverbed 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...
Early in 2020, Coronado Equipment Company sold 500 Rollomatics at $5,500 each. During 2020, Coronado spent $18,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. Part 1 Prepare 2020 entries for Coronado. Assume that Coronado estimates the total cost of servicing the warranties in the second year will be $32,000. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles...
Exercise 13-11 (Part Level Submission) Early in 2020, Carla Equipment Company sold 600 Rollomatics at $5,500 each. During 2020, Carla spent $19,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. (b) Prepare 2020 entries for Carla assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $52,000 relates to sales of warranty contracts.Warranty costs incurred in 2020 were $19,000. Estimate...
Exercise 13-11 Early in 2020, Windsor Equipment Company sold 500 Rollomatics at $5,500 each. During 2020, Windsor spent $22,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. Your answer is partially correct. Try again. Prepare 2020 entries for Windsor. Assume that Windsor estimates the total cost of servicing the warranties in the second year will be $38,000. (If no entry is required, select "No Entry" for the account titles and enter...
Exercise 13-11 (Part Level Submission) Early in 2020, Carla Equipment Company sold 600 Rollomatics at $5,500 each. During 2020, Carla spent $19,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. (a) Your answer is partially correct. Try again. Prepare 2020 entries for Carla. Assume that Carla estimates the total cost of servicing the warranties in the second year will be $32,000. (If no entry is required, select "No Entry" for the...