What liability relative to the transactions would appear

Assignment Help Accounting Basics
Reference no: EM131962203

Problem

Part Level Submission

Kingbird Corporation sells computers under a 2-year warranty contract that requires the corporation to replace defective parts and to provide the necessary repair labor. During 2017, the corporation sells for cash 368 computers at a unit price of $2,280. On the basis of past experience, the 2-year warranty costs are estimated to be $144 for parts and $184 for labor per unit. (For simplicity, assume that all sales occurred on December 31, 2017.) The warranty is not sold separately from the computer.

a. Record any necessary journal entries in 2017

b. What liability relative to these transactions would appear on the December 31, 2017, balance sheet and how would it be classified?

c. In 2018, the actual warranty costs to Brooks Corporation were $21,400 for parts and $39,900 for labor. Record any necessary journal entries in 2018.

Reference no: EM131962203

Questions Cloud

Deposit in the account today to have : How much does the financial manager have to deposit in the account today to have the required $125,000 in three (3) years?
Mean difference in government waste : Construct a 95% confidence interval for (the mean difference in government waste.
Confidence interval for the mean amount spent : Construct a 99% confidence interval for the mean amount spent daily per person at the theme park.
One sample standard deviation hypothesis test : Arbitron Media Research Inc. conducted a study of the iPod listening habits of men and women in New York City in the year 2010. One facet of the study
What liability relative to the transactions would appear : What liability relative to these transactions would appear on the December 31, 2017, balance sheet and how would it be classified?
Determining the confidence intervals : In a trial of Pfizer's new math anxiety-reducing drug, Probstatin® , a random sample of 100 students yielded 58 who showed significant improvement.
Certificate of deposit that pays : Find the future value of a $12,000 Certificate of Deposit that pays compounded interest every three months at the rate of 8% per year.
Compute total variable cost of producing one box of chap-off : Compute the total variable cost of producing one box of Chap-Off? What would be the maximum purchase price acceptable to Silven Industries?
Confidence interval estimate of the mean amount spent : Develop a 95% confidence interval estimate of the mean amount spent per day by a family of four visiting Niagara Falls (to 2 decimals).

Reviews

Write a Review

Accounting Basics Questions & Answers

  Consider a situation in which you or someone you know

consider a situation in which you or someone you know engaged in a written or oral contract containing specific

  Income before interest and taxes is expected to be 3500000

barnes company is considering two alternatives to finance its purchase of a new 4000000 office building.a issue

  Grant from gates foundation

Grant from Gates Foundation

  Prepare separate entries for each transaction on the books

On June 10, Diaz Company purchased $9,000 of merchandise from Taylor Company. Prepare separate entries for each transaction on the books of Diaz Company.

  Prepare all journal entries necessary to correct any errors

On July 1, 2010, Wasp purchased a small company and as a result acquired goodwill of $200,000.Wasp recorded a half-year's amortization in 2010, based on a 50-year life ($2,000 amortization). The goodwill has an indefinite life.

  Compute net income for the first year for alpaca corporation

Compute net income for the first year for Alpaca Corporation.

  Laura mcantee was just hired as the assistant treasurer

Laura McAntee was just hired as the assistant treasurer of Dorchester Stores. The company is a specialty chain store with nine retail stores concentrated in one metropolitan area.

  Compute the cost allocated to the city planning department

Suppose fixed- and variable-cost pools were allocated separately. Specify how each pool should be allocated. Compute the cost allocated to the city planning.

  Changing information technology

What are some of the ways that financial information will be changed in the way the information is processed, gathered, and communicated because of changing information technology?

  Product-cost cross-subsidization basics

Product-cost cross-subsidization is more likely to occur when:

  Using the conventional retail method

Using the conventional retail method, prepare a schedule computing estimated lower of-cost-or-market inventory for October 31, 2011.

  Problem regarding the books of meredith company

Prepare separate entries for each transaction on the books of Meredith Company. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2. Round answers to 0 decimal places, e.g. 125.)

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