Reference no: EM131786724

Can you help me with the questions below?

1. Soccer Hat Co. operates in a country with 10% sales tax. For convenience, Soccer Hat Co. credits Sales Revenue for the total amount collected from each customer. If the warehouse fails to make an adjustment for sales taxes, what would happen to the relevant accounts?

2. Company sells $500,000 of 11%, 15-year bonds for $450,253 on April 1, 2014. The market rate of interest on that day is 12.5%. Interest is paid each year on April 1. Company uses the straight-line amortization method. Write the adjusting entry required at December 31, 2014.

3. Company sells $400,000 of 12%, 5-year bonds for $392,879 on April 1, 2014. The market rate of interest on that day is 12.5%. Interest is paid each year on April 1. Company uses the straight-line amortization method. The amount of interest expense for each year will be?

4. Company sells $500,000 of 10%, 5-year bonds for 98. 1286 on April 1, 2014. The market rate of interest on that day is 10.5%. Interest is paid each year on April 1. The entry to record the sale of the bonds on April 1 would be?

5. A bond with a face amount of $12,000 has a current price quota of 101.65. What is the bonds price?

6. Co was organized to sell a single product that carries a 45 day warranty against defects. engineering estimates indicate that 5% of the units sold will prove defective and require an average repair cost of $30 per unit. During Cos first month of operations, total sales were 600 units, by the end of the month, 10 defective units had been repaired. The liability for product warranties at month end should be?