Question
In: Accounting
November 1st, 2019: All 200 staff at Tony Inc. buy Apple Care for which they pay...
November 1st, 2019: All 200 staff at Tony Inc. buy Apple Care for which they pay $100 each. Apple Inc. expects that 30% of staff will break their iPhones before December 31st, 2019 and have to go to Apple to get a replacement phone. The replacement phones cost Apple $200. Apple Care ends on December 31st, 2019 and it turns out that 20% of staff break their phones on December 31st , 2019 and Apple immediately replaces them.
A）Record all journal entries between November 1st, 2019 and December 31st, 2019. Also, create the balance sheet (As of Dec 31st, 2019) and income statement only (From Nov 1st, 2019 to Dec 31st, 2019) (6 points)
B） Re-do the above example with the case that 40% of staff break their phones. Re-do journal entries only (From Nov 1st, 2019 to Dec 31st, 2019) (3 points)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
PartA： Jan 1st, 2020: Tony Inc. buys a machine from Avengers Inc. and will make 3...
PartA： Jan 1st, 2020: Tony Inc. buys
a machine from Avengers Inc. and will make 3 equal payments of
200,000 over the next 18 months (payments on June 30, 2020; Dec 31,
2020; and June 30, 2021). The interest rate on this annuity is
14%. Record all the journal entries from Jan
1st 2020 until the expiration of the annuity. (4 points)
Assume the machine does not depreciate.
Part B: Create the balance sheet as of December
31st, 2020 along...
PartA： Jan 1st, 2020: Tony Inc. buys a machine from Avengers Inc. and will make 3...
PartA： Jan 1st, 2020: Tony Inc. buys
a machine from Avengers Inc. and will make 3 equal payments of
200,000 over the next 18 months (payments on June 30, 2020; Dec 31,
2020; and June 30, 2021). The interest rate on this annuity is
14%. Record all the journal entries from Jan
1st 2020 until the expiration of the annuity. (4 points)
Assume the machine does not depreciate.
Part B: Create the balance sheet as of December
31st, 2020 along...
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Jan 1st, 2019: ABC Inc. buys a machine from SW Inc. and will make 3 equal...
Jan 1st, 2019: ABC Inc. buys a machine from SW Inc.
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payments on June 30, 2019, Dec 31, 2019, and June 30, 2020. The
interest rate on this annuity is 14%. Record all
the journal entries from Jan 1st 2019 until the
expiration of the annuity under the condition that the machine does
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On January 1st, 2019, ABC Inc. purchased a copper mine
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Prepare the journal entries required on January 1st and
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Orange Inc. is a cellphone manufacturer and service provider. On Nov 1st, 2019, they sell 1000...
Orange Inc. is a cellphone manufacturer and service provider. On
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ABC Inc. decided to issue a bond on January 1st, 2019 with a market interest rate...
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On April
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ABC Inc. also found out that the $14,000 value of Goodwill in...
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