Questions from Intermediate Accounting

Q: 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 2017. Streep sold $1,000,000 of products subject to the warranty. Streep expects $125,000 of warranty costs o...

Q: Leppard Corporation sells DVD players. The corporation also offers its customers

Leppard Corporation sells DVD players. The corporation also offers its customers a 4-year warranty contract. During 2017, Leppard sold 20,000 warranty contracts at $99 each. The corporation spent $180...

Q: 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...

Q: Upland Company borrowed $40,000 on November 1, 2017

Upland Company borrowed $40,000 on November 1, 2017, by signing a $40,000, 9%, 3-month note. Prepare Upland’s November 1, 2017, entry; the December 31, 2017, annual adjusting entry; and the February 1...

Q: Takemoto Corporation borrowed $60,000 on November 1, 2017

Takemoto Corporation borrowed $60,000 on November 1, 2017, by signing a $61,350, 3-month, zero-interest bearing note. Prepare Takemoto’s November 1, 2017, entry; the December 31, 2017, annual adjustin...

Q: Sport Pro Magazine sold 12,000 annual subscriptions on August 1

Sport Pro Magazine sold 12,000 annual subscriptions on August 1, 2017, for $18 each. Prepare Sport Pro’s August 1, 2017, journal entry and the December 31, 2017, annual adjusting entry, assuming the m...

Q: Kasten Inc. provides paid vacations to its employees. At December

Kasten Inc. provides paid vacations to its employees. At December 31, 2017, 30 employees have each earned 2 weeks of vacation time. The employees’ average salary is $500 per week. Prepare Kasten’s Dec...

Q: Burnitz Manufacturing Company was organized on January 1, 2017. During

Burnitz Manufacturing Company was organized on January 1, 2017. During 2017, it has used in its reports to management the straight-line method of depreciating its plant assets. On November 8, you are...

Q: Mayaguez Corporation provides its officers with bonuses based on net income.

Mayaguez Corporation provides its officers with bonuses based on net income. For 2017, the bonuses total $350,000 and are paid on February 15, 2018. Prepare Mayaguez’s December 31, 2017, adjusting ent...

Q: Coldwell, Inc. issued a $100,000, 4

Coldwell, Inc. issued a $100,000, 4-year, 10% note at face value to Flint Hills Bank on January 1, 2017, and received $100,000 cash. The note requires annual interest payments each December 31. Prepar...