User Account

All Pages

The balance of the estimated warranty liability account

Assignment Help Accounting Basics
Reference no: EM13911548

The balance of the Estimated Warranty Liability account was $12,500 on January 1, 2013, and $17,200 on December 31, 2013. Based on an analysis of warranty claims during the past several years, this year's warranty provision was established at 1.5% of sales, and sales during the year were $1,300,000.

Required:
a. What amount of warranty expense will appear on the income statement for the year ended December 31, 2013?
b. What were the actual costs of servicing products under warranty during the year?

Reference no: EM13911548

Questions Cloud

Bond that pays interest annually yields a rate of return : A bond that pays interest annually yields a rate of return of 8.00 percent. The inflation rate for the same period is 3 percent. What is the real rate of return on this bond?
The value of stock is function-capital asset pricing model : In chapter 9 of the Random Walk book, the author is unwilling to abandon the CAPM for all of the following reasons except: The value of a stock is a function of Select one: In chapter nine of the Random Walk book discusses the Capital Asset Pricing m..
What is this companys total debt ratio : A company has Sales- $5000, total assets- $3000, debt to eq ratio=.25, ROE=.15, retained earnings $240 for the year. At what rate can this company grow if it would like to maintain its debt-equity ratio and not issue any new equity for the for see ab..
According to market values-debt-preferred and equity : According to market values, 25% debt, 10% preferred and 65% equity. The YTM on the firm's debt is currently 7.5% and the firm's marginal tax rate is 35%. The overall market rate of return is 12% and the firm plans on using retained earnings exclusive..
The balance of the estimated warranty liability account : The balance of the Estimated Warranty Liability account was $12,500 on January 1, 2013, and $17,200 on December 31, 2013.
Calculate the projects NPV-IRR-MIRR and Payback : Old Dominion is considering adding a new type of wind tamer to its trailers, which will save the company in fuel costs each year and the required rate of return is 8%. Calculate the project's NPV, IRR, MIRR and Payback
Future value of multiple annuities : Assume that you contribute $290 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $580 per month for another 30 years. Given a 7 percent interest rate, what is the value of your retirement plan after the 5..
The bonds pay interest on an annual basis on june : On July 1, 2013, $6 million face amount of 7%, 10 year bonds were issued.
What is estimate of ironores price and earnings ratio : Ironore Limited is an iron mining company whose mines are slowly being depleted (i.e., little by little, the amount of iron ore available in the mine is declining as the ore is extracted each year). What is your estimate of Ironore’s Price/Earnings r..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the final balance to be carried forward

1. From the below information, calculate the final balance to be carried forward in your check stubs as of the end of October.

  Give an explanation using the four classification criteria.

Use the information in RE21-3. Prepare the journal entries that Richie Company (the lessor) would make in the first year of the lease assuming the lease is classified as a sales type lease.

  What comparable businesses pay their presidents

She did not take any salary from the business for its first two years of operations. She is now receiving a salary that is 150 percent of what comparable businesses pay their presidents.

  Assume that the contribution margin ratio of the investment

westerville company reported the following results from last year 2013 operationssales 1000000variable expenses

  Standards associated with the types of engagements

Government Auditing Standards published by the United States Government Accountability Office define standards associated with the following types of engagements:

  What direct labor hour input could terracotta

What direct labor hour input (hours per unit) could Terracotta allow and still achieve its profi t goal?

  Boise corp had a margin of safety of 394000 last month with

boise corp had a margin of safety of 394000 last month with sales revenue of 1120000 and fixed costs of 333960.a.what

  What are internal controls why do companies need them what

what are internal controls? why do companies need them? what are some examples of internal controls? who is responsible

  Assume that you borrow 10000 for five years annual

assume that you borrow 10000 for five years annual payments at a market rate of 6. assuming that inflation is 3 what

  Interest is payable annually on each decembe

1.On December 31, 2013, Interlink Communications issued 6% stated rate bonds with a face amount of $100 million.

  Problem related to units of inventory

If there were 30,600 units of inventory on hand on December 31, 2007, how many units should be produced in January, 2008 in order for the company to meet its goals?

  How evidence is the heart of the audit

How evidence is the heart of the audit.

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