User Account

All Pages

Find what are the warranty expense balances

Assignment Help Financial Accounting
Reference no: EM132553494

Miley Equipment Company sells computers for $1,500 each and also gives each customer a 2-year warranty that requires the company to perform periodic services and to replace defective parts. During 2010, the company sold 700 computers. Based on past experience, the company has estimated the total 2- year warranty costs as $30 for parts and $60 for labor. (Assume sales all occur at December 31, 2010.)

In 2011, Miley incurred actual warranty costs relative to 2010 computer sales of $10,000 for parts and $18,000 for labor.

Instructions

Question (a) Under the expense warranty treatment, give the entries to reflect the above transactions (accrual method) for 2010 and 2011.

Question (b) Under the cash basis method, what are the Warranty Expense balances for 2010 and 2011?

Question (c) The transactions of part (a) create what balance under current liabilities in the 2010 balance sheet?

Reference no: EM132553494

Questions Cloud

What costs will be reported on up state income statement as : Repair transmission lines damaged by the most severe ice storm of the 20th century. These costs will be reported on Up state's 1998 income statement as
What was the mass of the water : 3500 J of energy are added to an unknown mass of water. The temperature changes 15°C. What was the mass of the water?
Compare and contrast project management approaches : Critically compare and contrast project management approaches and their appropriateness for managing a variety of project types
How has health promotion changed over time : Discuss how the concept of "health" has changed overtime. Discuss how the concept has evolved to include wellness, illness, and overall well-being.
Find what are the warranty expense balances : What are the Warranty Expense balances for 2010 and 2011, Under the cash basis method. Miley Equipment Company sells computers for $1,500 each
Describe the different levels of health promotion : Compare and contrast the three different levels of health promotion (primary, secondary, tertiary). Discuss how the levels of prevention help determine.
How much energy is required to heat : How much energy is required to heat 36.0g H2O from a liquid at 65 C to a gas at 115 C?
Two scholarly studies that utilize metaphors : Create a case study analysis based on two scholarly studies that utilize metaphors (Morgan's, or similar) to describe the functionality of organizations
Were the measurement instruments reliable and valid : Were the measurement instruments reliable and valid? Why or why not? If the study was experimental, was the intervention performed consistently? Why or why not?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What factors would you present for sharons consideration

Five Points Construction Co. specializes in building replicas of historic houses. What factors would you present for Sharon's consideration in the selection of a depreciation method?

  What is martinas basis for each of the shares received

Martina owns 100 shares of Bangor Corporation common stock at the beginning of the year, with a basis of $16,500. During the year, Bangor declares and pays a 10% nontaxable stock dividend. What is Martina's basis for each of the shares received?

  Make a journal entry to record pension expense

On January 1 st , 2018 Journal entry on 12/31/2018 to record pension expense for 2018 (do not forget to show work and circle your JE)

  Cash basis of accounting with accrual basis of accounting

Distinguish among depreciation, depletion, and amortization. If you had to pick two, what are the most common current liabilities that appear on a company's balance sheet?  Contrast the cash basis of accounting with the accrual basis of accounting.

  Find which not one of categories use by kaplan and norton

Which of the following items is NOT one of the categories used by Kaplan and Norton?The classic balanced scorecard developed by Robert Kaplan

  Federal consolidated corporate income tax return

Which is potentially a disadvantage of electing to file a federal consolidated corporate income tax return?

  How much overhead should be applied to customer order

How much overhead should be applied to the above customer order? After executing activity-based costing (ABC), the company's accountant identified the subsequent related information:

  Prepare a schedule that contains annual cash-flow data

Prepare a schedule that contains annual cash-flow data, annual operating income amounts, and annual residual income (RI) figures. What is the estimated NPV of the proposed investment?

  Question kingline company produces three products in a

question kingline company produces three products in a joint process costing 1000000. product 1 sells for 0.35ounce

  Determine the causes of variances

Listed below is your monthly operating report. Please review and discuss the specific variances and how you will determine the causes of variances.

  Assume the equity method is appropriate for use

On January 1, 2015, Chad Corp. paid $275,000 for 25% of the voting common stock of Barton Co. On that date, the book value of Barton was $850,000. A building with a carrying value of $170,000 was actually worth $230,000. Prepare all of Chad's journal..

  Discuss the relative advantages of lockbox systems

In terms of security, discuss the relative advantages of lockbox systems, charge cards, and debit cards from the standpoint of both the party making the payment and the party receiving the payment.

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