On January 2, 2020, Kingbird Company sells production equipment to Fargo Inc. for $55,000. Kingbird 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, 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, 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...
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...
Exercise 18-26 (Part Level Submission) On January 2, 2020, Coronado Company sells production equipment to Fargo Inc. for $54,000. 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 $930. At December 31, 2020, Coronado estimates that $650 of warranty costs will be incurred in the second year of the warranty. (a) Your answer is...
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, 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...
Exercise 130 On December 31, 2017, Dieker Company sells equipment to Tabor Inc. for $125,000. Dieker includes a 1-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2017. Dieker estimates the prices to be $123,000 for the equipment and $2,000 for the cost of the warranty. Prepare the journal entry to record this transaction on December 31, 2017. (Credit account titles are automatically indented when amount is...
Early in 2017, Kingbird Equipment Company sold 500 Rollomatics during 2017 at $ 5,500 each. During 2017, Kingbird spent $22,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. Prepare 2017 entries for Kingbird. Assume that Kingbird estimates the total cost of servicing the warranties will be $ 60,000 for 2 years. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account...
Marin 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 2020, the corporation sells for cash 380 computers at a unit price of $2,550. Ignore any cost of goods sold. Based on experience, the two-year warranty costs are estimated to be $166 for parts and $189 for labour per unit. (For simplicity, assume that all sales occurred on December 31, 2020.) The warranty is...