User Account

All Pages

Compute the amount that schmitt company should report

Assignment Help Accounting Basics
Reference no: EM132428869

Question - For the question, why the estimated warranty costs are calculated by multiplying the sales revenue by 0.1?

"Schmitt Company must make computations and adjusting entries for the following independent situations at December 31, 2011.

1) Its line of amplifiers carries a 3-year warranty against defects. On the basis experience the estimated warranty costs related to dollar sales are: first year after sale - 2% of sales: second year after sale after sales - 3% of sales; and third year after sale-5% of sales. Sales and actual warranty expenditures for the first 3 years of business were:

Sales Warranty Expenditures

2009 800,000 6,500

2010 1,100,000 17,200

2011 1,200,000 62,000

Instructions - Compute the amount that Schmitt Company should report as a liability in its December 31,2011, balance sheet. Assume that all sales are made evenly throughout each year with warranty expenses also evenly spaced relative to the rates above.

Reference no: EM132428869

Questions Cloud

Compute the direct materials cost per equivalent unit : The production department had $825,945 of direct materials. Compute the direct materials cost per equivalent unit for April
Explain what that advantage is : Explain what that advantage is. What is your advantage when you trade for those goods and services you do not have an absolute advantage in?
How would looking at a particular region of the sky change : How would looking at a particular region of the sky change when first looking through a small telescope and then looking through a much larger telescope?
Discuss in a paragraph or two the viability of various : Discuss in a paragraph or two the viability of various alternative energies (i.e. nuclear energy, wind energy, solar energy, hydroelectric, etc.)
Compute the amount that schmitt company should report : Instructions - Compute the amount that Schmitt Company should report as a liability in its December 31,2011, balance sheet
Evaluate the human population growth rates : Evaluate the population trends in each county (not country). Why are they different or the same? Expound on your reasons. List your sources.
Less visible in mainstream activities : In U.S. society, the elderly tend to be less and less visible in mainstream activities, in organizations, and in the workplace. One theory assigns this to ageis
Prepare the department equivalent units of production : Prepare the department's equivalent units of production with respect to direct materials under each of the three separate assumptions using the FIFO method
Permit freedom of expression on the internet : How to protect children and permit freedom of expression on the internet. Why should something thought of as pornographic or harmful to children

Reviews

Write a Review

Accounting Basics Questions & Answers

  Comparing income statement and the statement of cash flow

On January 1, Campus Internet Connection opened for business across the street from Upper Eastern University. The company charges students a monthly fee of $20 and $1 for each hour they are online.

  Determine the monthly payroll and benefits costs

Mr. Kaye opened a jewelry store that made and sold high-end jewelry. Using Excel, determine the monthly payroll and benefits costs for Kaye Jewelry Store

  What amount of drawings was made

Net income is $29,000. Beginning capital balance was $34,000. Ending capital balance was $55,000. No capital contributions were made by the owner during the year. What amount of drawings was made?

  What was the actual contribution margin per carabiner

What was the actual contribution margin per carabiner? What was Bachman's sales volume variance for the year? What was Bachman's flexible budget variance?

  Bond issue at the time of sale problem

The bonds were quoted at 94 and pay interest quarterly on September 30th and December 31st. What were the total proceeds of the bond issue at the time of sale?

  What is the value of the unlevered beta

Explain briefly the pecking order theory of funds developed by Myers and Majluf (1984)? What is Ross (1977) argument for separation in the capital markets?

  Calculate icy treats minimum and peak funding requirements

Icy Treats, Inc., is a seasonal business that sells frozen desserts. Calculate Icy Treats' minimum and peak funding requirements

  What is the carrying value of the note on december

The equipment should be recorded on January 1, 2017, at what amount, assuming an appropriate interest rate of 5%. What is the carrying value of the note

  Assess value of each method identified in your presentation

Imagine you are the chief financial officer (CFO) of a corporation with plans to complete the acquisition of a key subsidiary during the current year.

  Financial accounting standards board problem

Financial Accounting Standards Board assignment help and solutions, assessment help - Analyze the Financial Accounting Standards Board (FASB) conceptual.

  Stahl consulting started the year with total assets of

stahl consulting started the year with total assets of 20000 and total liabilities of 5000. during the year the

  Compare and contrast the federal and state guidelines

Compare and contrast the federal and state guidelines or requirements for building evacuations, with those of any applicable NFPA requirement/standard.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd