Reference no: EM132979004
Question - DP, INC., a dealer of household appliances, sells washing machines at an average price of P8,100. The company also offers to each customer a separate 3-year warranty contract for P810 that requires the company to provide periodic maintenance services and to replace defective parts. During 2017, DP sold 300 washing machines and 270 warranty contracts for cash. The company estimates that the warranty costs are P180 for parts and P360 for labor.
Assume sales occurred on December 31, 2017. DP's policy is to recognize income from the warranties on a straight-line basis. In 2018, DP incurred actual costs relative to 2017 warranty sales of P18,000 for parts and P36,000 for labor.
What liability relative to these transactions would appear on the December 31,2017, statement of financial position and how would it be classified?
What amount of warranty expense would be reported for 2017?
What liability relative to the 2017 warranties would be reported on December 31, 2018, and how would it be classified?
|
Should you take the option
: They are giving you the option to pay $100,000 in one year. The risk-free interest rate is 10% per year. Should you take the option
|
|
What is the maturity value
: What is the maturity value of your $7,800 investment after three years if the interest rate was 5% compounded semi annually for the first two years
|
|
What is the profitability index
: The required rate of return is 12.2 percent. What is the profitability index? Should you accept or reject the project based on this index value
|
|
Prepare the appropriate entries on december
: Suppose at the beginning of 2023, LCI decided it is not probable that the performance objectives will be met. Prepare the appropriate entries on December
|
|
What liability relative to these transactions
: What liability relative to these transactions would appear on the December 31,2017, statement of financial position and how would it be classified
|
|
Prepare the appropriate adjusting entry
: Prepare the appropriate adjusting entry(s) that Ronald Rackets Corporation would make on January 5, 2013 to account for the cash payment made to employees
|
|
Compute the probability that a female ages of forty-five
: Compute the probability that a female between the ages of 45 and 55 who tests positive for breast cancer has breast cancer, and enter your answer
|
|
What the overhead rate per machine hour will be
: The overhead rate per machine hour will be (Hint: Choose which of the above costs are Overhead costs, add them together, and divide the total by 10,000)
|
|
Find the expected current yield and expected capital gains
: Find the expected current yield and expected capital gains yield on the bond on January 1, 2027, given the price as determined in Part 'b' above
|