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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)

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Expert Solution

ekkarill92 answered 1 year ago
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