Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Icing Ltd sells freezers and provides a one-year warranty against faults occurring after sale. It estimates that if all goods with an outstanding warranty at its statement of financial position date of 31 December 2018 need minor repair the cost would be £4 million. If all the goods under warranty needed major repairs the total cost would be £ 14 million. At 31 December 2019 these amount have risen to £4.5 and £15 million respectively.
Based on previous years' behaviour, Icing Ltd estimates that 83% of the products will require no repairs, 15% will require minor repairs and 2% will require major repairs.
During the year ended 31 December 2019 actual costs of repairs under the warranty amounted to £ 520,000.
Required -
a. Explain the accounting treatment of the warranty in Icing Ltd's statements for the year ended 31 December 2019.
b. Explain if the following situation requires a provision to be created: "Johnson Ltd makes refunds to customers for any goods returned within 30 days of sale and has done so for many years, even though it has no legal obligation to do so."
Question - Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method. Determine the amount of the bond interest expense for the first year
On January 1 of the current year, the Orange Corporation issues $500,000 of 11%, 20-year bonds for $480,000. Determine the amount of original issue discount
In what ways could computerized accounting software or spreadsheets continue an ongoing fraud scheme relating to receivables
The carrying value of the bond after amortization on Dec 31, Year 2 was $113,465. 49. Make the appropriate adjusting journal entry for Dec 31, Year 2
Classify the following evident items by source (direct knowledge, external, and so on), rank them in order of reliability, and explain reasons for your ranking
Wal-Mart Corporation is the largest retailer in the world
Prepare journal entries for each of the transactions described (assume a perpetual inventory system).
Annual income tax returns.
SMS Co. has sales of P3 million. Assuming 360 days a year, what the change in policy would result to incremental investments in receivables
Analyze current events for their impact on this company's risk and internal control in the future. Include documentation of these current events.
Damarcus has a $20,000 basis in his Hoop stock. How much of Hoop's loss is Damarcus allowed to deduct against his other income
Each stage of an audit-planning, fieldwork, and wrap-up-provides an essential element of the engagement. Research the audit process using your textbook. Write a 4-5 page paper on the stages and elements of the audit process. Include the following ..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd