Reference no: EM132027532

Questions -

Q1. The Baker Company sold a $5,565 computer to Brad Cochran so he could play the best computer games on the internet. The Baker Company estimates that 9% of their sales would need warranty service. The warranty covers parts and the sale was completed on October 14th, 2015. The warranty is good for one year. On October 15th the computer is brought back for warranty work and the Baker Company used $400 of parts from Repair Parts Inventory. Record the journal entries.

Q2. Record the journal entries for the following transactions:

July 1, 2015: The board of directors of the Franklin Company declared a $145,000 dividend be paid to all stock holders.

July 15, 2015 The date of record to determine who is eligible to receive the dividend.

August 1, 2015 The dividend was paid.

Q3. The Lumber Company issued 5,000 shares of common stock with a par value of $2.00 per share at the market price of $47.50.

Q4. Record the journal entries for the following transactions. On April 1st, the Batman Company received a deposit from their customer for future services in the amount of $3,500. On April 30th, the company had earned 50% of the earned revenue.

Q5. Prepare journal entries for the following transactions. On October 14, 2015, the Carter Store sold $4,500 of merchandise to its customers and collected 8% in sales taxes. On October 21, 2015, the Carter Store paid the state of Virginia the collected sales taxes.