Question
In: Accounting
On September 1, 2016, Carolina Electronics Company has 1,000 Blu-ray players ready for sale. On October...
On September 1, 2016, Carolina Electronics Company has 1,000 Blu-ray players ready for sale. On October 1, 2016, 870 are sold, on account, at $125 each with a 1-year assurance-type warranty. Carolina estimates that the warranty cost on each Blu-ray player sold will probably average $8 per unit. During the final 3 months of 2016, Carolina incurred warranty costs of $3,800, and in 2017 warranty costs were $3,160. Required: 1. Prepare the journal entries for the preceding transactions. 2. Show how the preceding items would be reported on the December 31, 2016, balance sheet. 3. Prepare the journal entries for the preceding transactions using the modified cash basis method. 4. Next Level Which method produces the better measure of income? Why?
Solutions
ekkarill92 answered 6 months agoRelated Solutions
On September 1, 2016, Carolina Electronics Company has 1,000 Blu-ray players ready for sale. On October...
On September 1, 2016, Carolina Electronics Company has 1,000
Blu-ray players ready for sale. On October 1, 2016, 900 are sold,
on account, at $125 each with a 1-year assurance-type warranty.
Carolina estimates that the warranty cost on each Blu-ray player
sold will probably average $10 per unit. During the final 3 months
of 2016, Carolina incurred warranty costs of $4,000, and in 2017
warranty costs were $5,000.
Required:
1.
Prepare the journal entries for the preceding
transactions.
2.
Show...
KISS Electronics is considering the production of a new Blu-ray player. The managerial accountant has provided...
KISS Electronics is considering the production of a new Blu-ray
player. The managerial accountant has provided the following
information:
Number of units to be produced each year
10,000
Unit variable manufacturing costs
$79
Fixed manufacturing costs
$331,000
Required ROI
20%
Estimated investment required by the company
$441,000
Unit variable selling and administrative costs
$8
Fixed selling and administrative costs
$111,750
Required: answer the following questions by
providing only numeric values without any
formatting to the boxes given below. Round all...
KISS Electronics is considering the production of a new Blu-ray player. The managerial accountant has provided...
KISS Electronics is considering the production of a new Blu-ray
player. The managerial accountant has provided the following
information: Number of units to be produced each year 10,000 Unit
variable manufacturing costs $70 Fixed manufacturing costs $250,000
Required ROI 17% Estimated investment required by the company
$489,000 Unit variable selling and administrative costs $8 Fixed
selling and administrative costs $120,750 Required: answer the
following questions by providing only numeric values without any
formatting to the boxes given below. Round all...
On October 1, 2016, Ball Company issued 10% bonds dated October 1, 2016, with a face...
On October 1, 2016, Ball Company issued 10% bonds dated October
1, 2016, with a face amount of $350,000. The bonds mature in 8
years. Interest is paid semiannually on March 31 and September 30.
The proceeds from the bond issuance were $355,751.07 to yield
9.70%. Ball Company has a December 31 fiscal year-end and does not
use reversing entries.
Required:
1.
Prepare journal entries to record the issuance of the bonds and
the interest payments for 2016 and 2017...
On October 1, 2016, Ball Company issued 7% bonds dated October 1, 2016, with a face...
On October 1, 2016, Ball Company issued 7% bonds dated October
1, 2016, with a face amount of $310,000. The bonds mature in 12
years. Interest is paid semiannually on March 31 and September 30.
The proceeds from the bond issuance were $320,168.62 to yield
6.60%. Ball Company has a December 31 fiscal year-end and does not
use reversing entries.
Required:
1.
Prepare journal entries to record the issuance of the bonds and
the interest payments for 2016 and 2017...
On October 1, 2016, Ball Company issued 10% bonds dated October 1, 2016, with a face...
On October 1, 2016, Ball Company issued 10% bonds dated October
1, 2016, with a face amount of $350,000. The bonds mature in 8
years. Interest is paid semiannually on March 31 and September 30.
The proceeds from the bond issuance were $355,751.07 to yield
9.70%. Ball Company has a December 31 fiscal year-end and does not
use reversing entries.
Required:
1.
Prepare journal entries to record the issuance of the bonds and
the interest payments for 2016 and 2017...
On October 1, 2016, Ball Company issued 6% bonds dated October 1, 2016, with a face...
On October 1, 2016, Ball Company issued 6% bonds dated October
1, 2016, with a face amount of $210,000. The bonds mature in 9
years. Interest is paid semiannually on March 31 and September 30.
The proceeds from the bond issuance were $218,888.62 to yield
5.40%. Ball Company has a December 31 fiscal year-end and does not
use reversing entries.
Required:
1.
Prepare journal entries to
record the issuance of the bonds and the interest payments for 2016
and 2017...
3. Georgia, Inc. bought 30% of Carolina Company on January 1, 2016 for $225,000. The equity...
3. Georgia, Inc. bought 30% of Carolina Company on January 1,
2016 for $225,000. The equity method was used. No amortization was
required. In 2016, Carolina shipped to Georgia merchandise with a
cost of $12,000 and a selling price of $15,600. One-third of the
merchandise remained in Georgia’s inventory at year-end and was
sold in 2017. In 2017, Carolina received merchandise from Georgia,
who recorded a gross profit of $18,000 on the sale. One-fourth of
the merchandise remained in ending...
Georgia, Inc. bought 30% of Carolina Company on January 1, 2016 for $225,000. The equity method...
Georgia, Inc. bought 30% of Carolina Company on January 1, 2016
for $225,000. The equity method was used. No amortization was
required. In 2016, Carolina shipped to Georgia merchandise with a
cost of $12,000 and a selling price of $15,600. One-third of the
merchandise remained in Georgia's inventory at year-end and was
sold in 2017. In 2017, Carolina received merchandise from Georgia,
who recorded a gross profit of $18,000 on the sale. One-fourth of
the merchandise remainded in ending inventory,...
Graham Potato Company has projected sales of $13,200 in September, $16,000 in October, $23,200 in November,...
Graham Potato Company has projected sales of $13,200 in
September, $16,000 in October, $23,200 in November, and $19,200 in
December. Of the company's sales, 25 percent are paid for by cash
and 75 percent are sold on credit. Experience shows that 40 percent
of accounts receivable are paid in the month after the sale, while
the remaining 60 percent are paid two months after. Determine
collections for November and December.
Also assume Graham’s cash payments for November and December...
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