User Account

All Pages

What are the warranty expense balances

Assignment Help Financial Accounting
Reference no: EM132531312

Warranties.

Miley Equipment 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 2010, 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, 2010.)

In 2011, Miley incurred actual warranty costs relative to 2010 computer sales of $10,000 for parts and $18,000 for labor.

Instructions

Question (a) Under the expense warranty treatment, give the entries to reflect the above transactions (accrual method) for 2010 and 2011.

Question (b) Under the cash basis method, what are the Warranty Expense balances for 2010 and 2011?

Question (c) The transactions of part (a) create what balance under current liabilities in the 2010 balance sheet?

Reference no: EM132531312

Questions Cloud

Prepare journal entries to record the accrual of interest : Prepare journal entries to record The accrual of interest on December 31. The payment of interest on July 1. The issuance of the bonds.
Annual coupon payments paid by the issuer : Please help me with question 2 3 4 6. (Thank you in advance)! 1.) Define the following terms
Amazon food and grocery online : What ERM framework (or enhancements if there is already a framework in place) would suggest for the company/entity to be better prepared in the future?
What yield to maturity do they expect to receive : Several years ago, Castles in the Sand Inc. issued bonds at face value of $1,000 at a yield to maturity of 8%. Now, with 7 years left until the maturity of the
What are the warranty expense balances : Under the cash basis method, what are the Warranty Expense balances for 2010 and 2011? what balance under current liabilities in the 2010 balance sheet?
Calculate the capital balances of each partner : Calculate the capital balances of each partner after the admission of Garachico, assuming that bonuses are recorded when appropriate for each
Describe the organization environment : Describe the organization's environment, and evaluate its preparedness for virtualization. Explain Microsoft licensing for virtualized environments
How much can spend each year after retires : How much can spend each year after retires, if can earn 9 % per year after retirement. Her first withdrawal will be made at the end of first retirement year.
Investigate the nature and extent of a network intrusion : Apply socio-technical contexts in analysing the digital forensic evidences and Demonstrate competence in applying industry-standard forensic analysis techniques

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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