BUSINESS COLLEGE

Hitzu Co. sold a copier (that costs $4,500) for $9,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 6% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $114 for materials taken from the repair parts inventory. These are the only repairs required in Year 2 for this copier. Based on experience, Hitzu expects to incur warranty costs equal to 4% of dollar sales. It records warranty expense with an adjusting entry at the end of each year.Required:
a. How much warranty expense does the company report in 2015 for this copier?
b. How much is the estimated warranty liability for this copier as of December 31, 2015?
c. How much warranty expense does the company report in 2016 for this copier?
d. How much is the estimated warranty liability for this copier as of December 31, 2016?

Answers

Answer 1

Answer:

Answer:

Explanation:

Requirement 1

Warranty expense in 2015 = $9,000 x 6%

Warranty expense in 2015 = $540

Note: As mention above Hitzu expects warranty cost to be 6% of dollar sales

Requirement 2

Estimate warranty liability as of Dec 2015 = $540

Requirement 3

Warranty expense in 2016 = 0

Requirement 4

Estimated warrant liability as of Dec 2016 = $540 -$114

Estimated warrant liability as of Dec 2016 = $426

Note: As the repair costs 114 on the same day of repair.

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Saturn Motorcycle's selected accounts as of December 31, 2018, follow: Selling Expenses $10,400 Interest Revenue 1,900 Net Sales Revenue 130,000 Cost of Goods Sold 81,000 Administrative Expenses 8,500Required:Prepare the multi-step income statement for the year ended December 31, 2018.
1. Early in 2020, Cullumber Equipment Company sold 500 Rollomatics at $6,300 each. During 2020, Cullumber spent $20,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. Prepare 2020 entries for Cullumber. Assume that Cullumber estimates the total cost of servicing the warranties in the second year will be $34,000.Date Account Titles and Explanation Debit CreditAt Sale During 2017 Dec. 31, 2017At SaleDuring 2017Dec. 31, 2017At SaleDuring 2017Dec. 31, 2017 2. Prepare 2017 entries for Coronado assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $51,000 relates to sales of warranty contracts. Coronado estimates the total cost of servicing the warranties will be $50,000 for 2 years. Estimate revenues to be recognized on a straight-line basis.Date Account Titles and Explanation Debit CreditAt Sale During 2017 Dec. 31, 2017At SaleDuring 2017Dec. 31, 2017At SaleDuring 2017Dec. 31, 2017
Carlson Fashions uses standard costs for Its manufacturing division. From the following data, calculate the fixed overhead volume variance.-Actual fixed overhead $40,000-Budgeted fixed overhead $21,000-Standard overhead allocation rate $6-Standard direct labor hours per unit 4 DLHr-Actual output 2,100

You need to write a report that shows a company's profits by divisions located in regions around the country. You should organize your report by __________. a. incorporating extensive primary data to assure the reader of your credibility
b. arranging the information chronologically according to the date the profits were generated at each location
c. creating sections of the report that represent each geographic region

Answers

Answer:

c. creating sections of the report that represent each geographic region

Explanation:

In addition to writing the total value of earnings in the report, what will have to be done is to perform a detailed breakdown of the geographical location of the earnings of each place, grouping by geographic location in case you find more than one place in the region. The different divisions must be carried out according to the power that each division represents when selling and not according to city or state.

Record the adjusting entry for salaries payable (LO3-3) Fighting Irish Incorporated pays its employees $3,220 every two weeks ($230/day). The current two-week pay period ends on December 28, 2021, and employees are paid $3,220. The next two-week pay period ends on January 11, 2022, and employees are paid $3,220. Required: Record the adjusting entry on December 31, 2021. Calculate the 2021 yearend adjusted balance of Salaries Payable (assuming the balance of Salaries Payable before adjustment in 2021 is $0).

Answers

Answer:

Record the adjusting entry on December 31, 2021. Calculate the 2021 year end adjusted balance of Salaries Payable (assuming the balance of Salaries Payable before adjustment in 2021 is $0).

Db Salaries expenses____________________ 690

Cr Salaries payable_______________________ 690

Explanation:

Pays 3220 Two Weeks

Pays 230 Daily

Dates Expense Payable

December 29 230

December 30 230

December 31 230

Janaury 1 230

Janaury 2 230

Janaury 3 230

Janaury 4 230

Janaury 5 230

Janaury 6 230

Janaury 7 230

Janaury 8 230

Janaury 9 230

Janaury 10 230

Janaury 11 230

690 2530

Db Salaries expenses____________________ 690

Cr Salaries payable_______________________ 690

Financing that individuals or institutions have provided to a corporation is: Multiple Choice always classified as a liability. classified as a liability when provided by creditors and as stockholders' equity when provided by owners. always classified as equity. classified as a stockholders' equity when provided by creditors and a liability when provided by owners.

Answers

Answer:

classified as a liability when provided by creditors and as stockholders' equity when provided by owners

Explanation:

Corporate finance can be explained as how the revenue, asset as well as is been taken care of in business. The financing could be by individual or institution.

It should be noted that Financing that individuals or institutions have provided to a corporation is classified as a liability when provided by creditors and as stockholders' equity when provided by owners

Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $13,200 to the Roth IRA ($4,400 a year). The current value of the roth IRA is $18,350. In the current year, Sherry withdraws $16,000 of the account balance to purchase a car. Assuming Sherry is in a 25 percent marginal tax bracket, how much of the $16,000 withdrawal will she retain after taxes to fund her car purchase?Amount of withdrawal __________ ?Non-taxable amount __________ ?Amount subject to tax __________ ?tax rate ________ ?penalty rate __________ ?tax _________ ?penalty _________ ?after tax withdrawal retained ____________ ?

Answers

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

A static budget: _________a. should be compared to actual costs to assess how well costs were controlled.
b. should be compared to a flexible budget to assess how well costs were controlled.
c. is valid for only one level of activity. represents the best way to set spending targets for managers.
d. A planning budget is prepared before the period begins and is valid for only the planned level of activity.

Answers

A static budget a planning budget is prepared before the period begins and is valid for only the planned level of activity. The answer is OPTION D.

A static budget is a type of planning budget that is prepared in advance of a specific period, such as a fiscal year or a quarter. It is based on the expected level of activity or production for that period and sets spending targets for various cost categories. However, a static budget is only valid for the planned level of activity and does not adjust for changes in actual activity levels.

To assess how well costs were controlled during the period, the static budget should be compared to the actual costs incurred. This comparison helps identify any variations or differences between planned and actual performance, which can provide valuable insights for future budgeting and cost management decisions.

In contrast, a flexible budget is a more dynamic tool that adjusts for changes in activity levels. It allows managers to see how costs should have behaved based on the actual level of activity achieved, providing a more accurate evaluation of cost control performance.

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Answer:

Explanation: A planning budget is prepared before the period begins and is valid for only the planned level of activity.

SER jeans maker is designing a new line of jeans. These jeans will sell for $410 per unit and cost $328 per unit in variable costs to make Fixed out 120.000. If 5,000 units are produced and sold, income equals Multiple Choice Multiple Choice $2,050,000. O $1,930,000 O $290,000. O $410,000. O $1,520,000.

Answers

The correct option is C. SER jeans maker is designing a new line of jeans. These jeans will sell for $410 per unit and cost $328 per unit in variable costs to make Fixed out 120.000. If 5,000 units are produced and sold, income equals $290,000.

Sales (5,000×$410) = $2,050,000

Less: Variable costs (5,000×$328) = 1,640,000

Contribution margin = 410,000

Less: Fixed costs = 120,000

Net income (loss)

Variable charges are fees that alternate as the amount of the coolest or service that an enterprise produces adjustments. Variable costs are the sum of marginal expenses over all devices produced. They also can be taken into consideration regular fees. constant charges and variable charges make up the two additives of the total price. Direct costs are costs that could without problems be related to a particular value object.

But, no longer all variable fees are direct charges. for instance, variable production overhead fees are variable fees that might be indirect prices, not direct costs. Variable prices are once in a while known as unit-stage costs as they range with the range of devices produced. Direct hard work and overhead are regularly known as conversion fees, whilst direct cloth and direct labor are frequently known as top prices.

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