Q: Kasten Inc. provides paid vacations to its employees. At December
Kasten Inc. provides paid vacations to its employees. At December 31, 2014, 30 employees have each earned 2 weeks of vacation time. The employees’ average salary is $500 per week. Prepare Kasten’s Dec...
See AnswerQ: Mayaguez Corporation provides its officers with bonuses based on net income.
Mayaguez Corporation provides its officers with bonuses based on net income. For 2014, the bonuses total $350,000 and are paid on February 15, 2015. Prepare Mayaguez’s December 31, 2014, adjusting ent...
See AnswerQ: Scorcese Inc. is involved in a lawsuit at December 31,
Scorcese Inc. is involved in a lawsuit at December 31, 2014. (a) Prepare the December 31 entry assuming it is probable that Scorcese will be liable for $900,000 as a result of this suit. (b) Prepa...
See AnswerQ: Calaf’s Drillers erects and places into service an off-shore oil
Calaf’s Drillers erects and places into service an off-shore oil platform on January 1, 2015, at a cost of $10,000,000. Calaf is legally required to dismantle and remove the platform at the end of its...
See AnswerQ: Faith Battle operates a health food store, and she has been
Faith Battle operates a health food store, and she has been the only employee. Her business is growing, and she is considering hiring some additional staff to help her in the store. Explain to her the...
See AnswerQ: Streep Factory provides a 2-year warranty with one of its
Streep Factory provides a 2-year warranty with one of its products which was first sold in 2014. In that year, Streep spent $70,000 servicing warranty claims. At year-end, Streep estimates that an add...
See AnswerQ: Leppard Corporation sells DVD players. The corporation also offers its customers
Leppard Corporation sells DVD players. The corporation also offers its customers a 2-year warranty contract. During 2014, Leppard sold 20,000 warranty contracts at $99 each. The corporation spent $180...
See AnswerQ: Wynn Company offers a set of building blocks to customers who send
Wynn Company offers a set of building blocks to customers who send in 3 UPC codes from Wynn cereal, along with 50¢. The block sets cost Wynn $1.10 each to purchase and 60¢ each to mail to customers. D...
See AnswerQ: How would each of the following items be reported on the balance
How would each of the following items be reported on the balance sheet? (a) Accrued vacation pay. (b) Estimated taxes payable. (c) Service warranties on appliance sales. (d) Bank overdraft. (e)...
See AnswerQ: The following are selected 2014 transactions of Sean Astin Corporation.
The following are selected 2014 transactions of Sean Astin Corporation. Sept. 1 Purchased inventory from Encino Company on account for $50,000. Astin records purchases gross and uses a periodic inv...
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