Prepare the entries to reflect the above transactions

Assignment Help Accounting Basics
Reference no: EM132974535

Question: Milordike 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 2014, 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, 2014.)

In 2015, Milordike incurred actual warranty costs relative to 2014 computer sales of $10,000 for parts and $18,000 for labor.

Under an assurance-type warranty, prepare the entries to reflect the above transactions (accrual method) for 2014 and 2015.

Reference no: EM132974535

Questions Cloud

Outline the concept of duty holders in whs legislation : Outline the concept of duty holders in WHS legislation. Then identify key duty holders in the Plan2go organisation who are relevant to the People and Culture te
Discuss characteristics of agent-based simulation model : After reading this "Agent-Based Simulation Helps Analyze Spread of a Pandemic Outbreak answer the following:
Draw merchandise purchases budget : Draw merchandise purchases budget showing how many units should be purchased for each of the months April, May, and June
What type of management style is practised in pepsico inc : Please explain what type of management style is practised in PepsiCo Inc? Is it similar or different from companies in that industry? Please explain.
Prepare the entries to reflect the above transactions : Prepare the entries to reflect the above transactions (accrual method) for 2014 and 2015 - computer sales of $10,000 for parts and $18,000 for labor
Describe the many types of risks that a financial firm faces : Describe the many types of risks that a financial firm faces. How can you use portfolio choice theory to help you make better investing decisions
Explain the telemedicine systems-tracking system : What is the consideration of security and privacy for collecting and analyzing of data if I'm going to create Telemedicine systems & Tracking system like tr
What is the price of the BBB-rated corporate bond : A BBB-rated corporate bond has a yield to maturity of 12.7%. What is the price (expressed as a percentage of the face value) of BBB-rated corporate bond
Shareholders equity of diamond company : Amounts and number of issued and outstanding shares and Entries for the above transactions (memorandum method)

Reviews

Write a Review

Accounting Basics Questions & Answers

  Number of equivalent units of production

If Department K had 2,000 units, 45% completed, in process at the beginning of the period, 12,000 units were completed during the period, and 1,200 units were 40% completed at the end of the period, what was the number of equivalent units of produ..

  Discuss the annual required contribution

The City of South Pittsburgh maintains its books so as to prepare fund accounting statements and records worksheet adjustments in order.

  What is effect of transaction on individual asset accounts

What is the effect of this transaction on individual asset accounts, individual liability accounts, the Capital Stock account, and the Retained Earnings account

  Discuss what you would do

Your physician states that you must make changes to bring this number down, without affecting the efficiency of the office. Discuss what you would do?

  Compute the total profit share of Simon

Peter, Paul, and Simon are partners in an accounting firm. If the profits of P66,000 in 2018, compute the total profit share of Simon

  Prepare the cash flow statement by the indirect method

ACCT 1221 Accounting Assignment Problems, Thompson Rivers University, Canada. Prepare the cash flow statement by the indirect method

  Georgia company borrowed 600000 from a bank on may 1 2007

georgia company borrowed 600000 from a bank on may 1 2007. the bank required a return of 12 on the loan. the loan is to

  In its first month of operations cerretti company made

in its first month of operations cerretti company made three purchases of merchandise in the following sequence 1 300

  What will be the total funds the company can invest

What will be the total funds the company can invest in capital budgeting projects this year before new common stock must be issued to raise new funds

  By-product further processing decision

For a given by-product, 100 units can besold at the split-off point for $8 each, or processed further at a cost of $12 each andsold for $19.

  Determine the non-current portion of the note payable

The first principal and interest payment was made on April 1, 20x7. Determine the non-current portion of the note payable as of December 31, 20x7

  Prepare statement of cash flows for mash corporation

Prepare one complete statement of cash flows for Mash Corporation, showing the computation of net cash flows from operating activities by the direct method

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!

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