Reference no: EM133031449
Questions -
Q1. On January 1, 2021, Umbrella Insurance Company has collected $24,000 for multiple two-year insurance premiums and recorded the funds in Unearned Revenue. Umbrella records insurance revenue on a monthly basis. How much will be in the Unearned Revenue account on November 30, 2021?
$2,000
None of these
$13,000
$22,000
$11,000
Q2. Prairie Company had sales of $1,500,000. Estimated warranty costs are 1.5% of sales. Work performed under warranties during the period actually cost $8,750. The entry to record the warranty liability includes:
a debit to Warranty Expense for $31,250.
a debit to Warranty Expense for $22,500.
a debit to Warranty Expense for $8,750.
a debit to Warranty Expense for $16,250.
none of these