User Account

All Pages

Prepare the journal entry to record transaction on January

Assignment Help Accounting Basics
Reference no: EM133053722

Question - On January 2, 2020, Kingbird Company sells production equipment to Fargo Inc. for $55,000. Kingbird includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Kingbird incurs costs related to warranties of $890. At December 31, 2020, Kingbird estimates that $660 of warranty costs will be incurred in the second year of the warranty.

Required -

(a) Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020 (assuming financial statements are prepared on December 31, 2020).

(b) Repeat the requirements for (a), assuming that in addition to the assurance warranty, Kingbird sold an extended warranty (service-type warranty) for an additional 2 years (2022-2023) for $800.

Reference no: EM133053722

Questions Cloud

Calculate the product cost for each season : Chuck's orders 6,500 gallons in the summer and 6,500 gallons in the winter. Calculate the product cost for each season with excess capacity costs assigned
Have social technologies changed e-commerce : Have social technologies changed e-commerce? If so, how? What must e-commerce keep up with social technologies? Would it help to increase revenue?
How did venezuela politics impact business : Why is political risk so dangerous to the operations of a foreign subsidiary? How did Venezuela's politics impact business?
Difference between earning yield and capital gain : What is the difference between earning yield and capital gain? How does the treasury bond yield affect each of them?
Prepare the journal entry to record transaction on January : Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020 (assuming financial statements are prepared on December)
Eliminate child labor : BestLee has informed its shareholders that the effort to eliminate child labor will be extremely costly. In fact, BestLee has estimated that changing to a new l
What is the option VaR over the next two weeks : If the volatility of the rate of return on the index is 30%, what is the option's VaR over the next two weeks at 95% confidence level
Benefits of social media marketing : Following benefits of social media marketing: developing a loyal community, improving brand image, showing expertise or product quality, improving customer serv
How much will be the cash balance at the end of Quarter : There are no other expenses The beginning cash balance (Q1 beginning) is $30 million How much will be the cash balance at the end of Quarter 3

Reviews

Write a Review

Accounting Basics Questions & Answers

  How crime mapping as a technological solution might benefit

Explain at least three ways in which law enforcement may utilize data from crime mapping to prevent and/or address crime - Explain any challenges related to the use of this data to prevent or address crime.

  What is the company monthly total fixed cost

Assuming a constant product mix, the break even level of monthly sales dollars is $725,000. What is the company's monthly total fixed cost

  What would the dollar price of the car be now

In 1983, the Japanese yen-U.S. dollar exchange rate (USD/JPY) was 245 yen per dollar, What would the dollar price of the car be now

  Calculate the variable overhead cost variance for hermetic

spent $5,200 in variable manufacturing $8,800 in fixed manufacturing overhead costs. Calculate the variable overhead cost variance for Hermetic

  Journalize the write-offs and the year-end adjusting entry

Journalize the write-offs and the year-end adjusting entry for 2010 under the allowance method, assuming that the allowance account had a beginning balance of $22,500 on January 1, 2010, and the company uses the analysis of receivables method.

  Explain the following terms

Explain the following terms.

  Provide necessary journal entries for disposal of machinery

Provide the necessary journal entries for the disposal of the machinery and the acquisition of the motor vehicle on 1 July 2019

  Compute the total cost of job

Job A45 required 4 boxes of direct materials at a cost of $30 per box and took employees 20 hours to complete

  Centralized and decentralized decision making

1. Discuss the differences between centralized and decentralized decision making. 2. What is decentralization? 3. Explain why firms choose to decentralize.

  What is the proper method of accounting for scrap

Question - The answer is to be written in essay form. What is the proper method of accounting for scrap

  Create a t account for the allowance for doubtful accounts

Create a T-account for the Allowance for Doubtful Accounts and enter into it the amounts from the above schedule. Then write the T-account in equation format to prove that the above items account for the changes in the account. Record summary journal..

  Prepare statement of retained earnings

This chart of accounts should help you identify the appropriate accounts to record to as you are analyzing and journaling transactions for this workbook

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