Prepare the general journal entry at June

Assignment Help Accounting Basics
Reference no: EM132692814

Question - The following information is related to Sunglow Solar Ltd:

Sales for the year ended 30 June 2019 was $1,200,000

Provision for warranties before adjustment was $36,000

At 30 June 2019, Sunglow Solar Ltd. adjusted its Provision for Warranties so that it would be equal to 4% of sales for the year ended on that date.

On 16 September 2019, a successful claim for warranty on faulty goods to the cost of $700 was made on Sunglow Solar Ltd.

Required -

a) Prepare the general journal entry at 30 June 2019 to adjust the Provision for Warranties to the required level.

b) Record the payment of the warranty claim on 16 September 2019 in general journal format.

Reference no: EM132692814

Questions Cloud

Discuss web 2.0 and social media : Discuss how Web 2.0 and social media have altered the way in which entrepreneurial and small businesses
What is the impact on Belden income : If Belden sells its entire investment in Sheffield on January 1, 2019, for $432,000 cash, what is the impact on Belden's income
Understanding of subject matter : How did participating in discussions help your understanding of the subject matter? Is anything still unclear that could be clarified?
Creating code of conduct for merged organization : Theresa and Mike fully support creating a code of conduct for the merged organization.
Prepare the general journal entry at June : Sales for the year ended 30 June 2019 was $1,200,000. Prepare the general journal entry at 30 June 2019 to adjust the Provision for Warranties to required level
Characteristics and importance of financial markets : Describe why a manager needs to understand the characteristics and importance of financial markets, including their liquidity, competitiveness, and efficiency.
Bootstrap marketing and advertising : Using the Internet or Strayer databases, find three (3) examples of bootstrap marketing strategies.
Calculate the depreciation expense for the second year : Assume the van was purchased on 1 July 2019 and that the accounting period ends on 30 June. Calculate the depreciation expense for the second year
Prepare journal entries to record the collection : Kent Ltd, whose $1,300 account had been written off as uncollectable in June, paid its account in full. Prepare journal entries to record the collection

Reviews

Write a Review

Accounting Basics Questions & Answers

  Provide objective assessment of whether audit independence

Liam Neeson, Identify potential threat(s) to independence & recommend safeguards (if any) to reduce the independence threat(s) identified.

  Compute moozi fixed manufacturing overhead variances

Moozi applies manufacturing overhead to its products on the basis of standard machine-hours. Compute Moozi fixed manufacturing overhead variances for last year

  What is the intrinsic value of its common stock

Billings Metals Corp. just paid a $4.40 dividend to its common stockholders. If Billings Metals has a beta of 0.8, what is intrinsic value of its common stock

  Do you agree with Howard proposed reporting

Howard plans to recognize a long-term capital gain of $20,000 as a result of the sale. Do you agree with Howard's proposed reporting

  Discuss the Federal estate and gift tax ramifications

Dudley dies in December, and his estate pays Eva the remaining $3.5 million in May 2020. Discuss the Federal estate and gift tax ramifications

  Calculate basic earnings per share of common stock

Net income was $358,300 for the year. Calculate basic earnings per share of common stock for the year

  Deals with socially responsible marketing and ethics

Select an article that deals with socially responsible marketing and ethics. In a paper of 500-750 words, summarize the article, addressing the following questions:

  If you were to receive 1000 each year for 10 years

if you were to receive 1000 each year for 10 years starting at the end of 4 years determine what this annuity is worth

  Caspian creations sells wooden boxes from a kiosk in a mall

caspian creations sells wooden boxes from a kiosk in a mall. fixed costs are 2500 per month and the variable cost is

  Prepare the journal entry to record the acquisition

The land was recently appraised at $115,230. The common stock is actively traded at $49 per share. Prepare the journal entry to record the acquisition of land

  What is the amount of its total liabilities

The total assets of McGlone Co. are $800,000 and its liabilities are equal to one half of its total assets. What is the amount of McGlone Co.'s owner's equity?

  Barring any unusual circumstances during the year the board

most corporations pay quarterly dividends on their common stock rather than annual dividends. barring any unusual

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