November 1st, 2019: All 200 staff at Tony Inc. buy Apple Care for which they pay...

November 1^st, 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 31^st, 2019 and have to go to Apple to get a replacement phone. The replacement phones cost Apple $200. Apple Care ends on December 31^st, 2019 and it turns out that 20% of staff break their phones on December 31^st , 2019 and Apple immediately replaces them.

A）Record all journal entries between November 1^st, 2019 and December 31^st, 2019. Also, create the balance sheet (As of Dec 31^st, 2019) and income statement only (From Nov 1^st, 2019 to Dec 31^st, 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 1^st, 2019 to Dec 31^st, 2019) (3 points)

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ekkarill92 answered 1 year ago

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