1) Farmers Tool Company sells lawn mowers with a 2-year service-type warranty. The warranty costs $99....

1) Farmers Tool Company sells lawn mowers with a 2-year service-type warranty. The warranty costs $99. On November 1, 2017, Farmers Tool Company sold 20 lawnmowers at $2,000 each. Ten warranties were sold. On July 14, 2018, $500 is spent on warranty costs. Prepare the journal entries related to the sale on November 1st and for the warranty costs incurred on July 14th.
SHOW YOUR CALCULATIONS!!! Do not forget journal entry descriptions.

2)

Diamond Corporation declared a cash dividend of $40,000 on December 1, 2017. Record the entry (if any) of this declaration. Do not forget journal entry descriptions.

3)

Victor Valentines offers a premium to its customers – glass rose vase (cost to Victor Valentines is $3 each) for the return of 10 labels. Each box of chocolates sold contains a label. The company estimates, based on past experience, that 65% of the labels will be redeemed. During 2018, one million boxes of chocolates were sold at $6 per box. During 2018, 350,000 labels were redeemed. Victor Valentines purchased 50,000 glass rose vases on January 1, 2018.

Prepare the journal entries for the sale of the boxed chocolates, the purchase of the premiums, the estimated premium expense, and the redemption of the labels. (15 points)

Expert Solution

ekkarill92 answered 1 year ago

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