On November 10, 2017, Singh Electronics began to buy and resell scanners for $47 each. Singh uses the perpetual system to account for inventories. The scanners are covered under a warranty that requires the company to replace any non-working scanner within 90 days. When a scanner is returned, the company simply throws it away and mails a new one from inventory to the customer. The company’s cost for a new scanner is only $27. Singh estimates warranty costs based on 15% of the number of units sold. The following transactions occurred in 2017 and 2018 (ignore GST and PST):

Required:
1. How much warranty expense should be reported for November and December 2017?

2. How much warranty expense should be reported for January 2018? (Round your intermediate calculations and final answer to the nearest whole number.)

3. What is the balance of the estimated warranty liability as of December 31, 2017?

4. What is the balance of the estimated warranty liability as of January 31, 2018?

5. Prepare journal entries to record ALL transactions and year-end adjustments (ignore sales taxes).

1.Record the sale of scanners to customers.

2.Record the cost of the November 15 sale.

3.Record the scanner warranty expense and liability at 15% of the units sold.

4.Record the cost of scanner warranty replacements.

5.Record the sale of scanners to customers.

6.Record the cost of the December 15 sale.

7.Record the cost of scanners warranty replacements.

8.Record the scanner warranty expense and liability at 15% of the units sold.

9.Record the sale of scanners to customers.

10.Record the cost of the January 14 sale.

11.Record the cost of scanner warranty replacements.

12.Record the scanner warranty expense and liability at 15% of the units sold.

On November 10, 2017, Singh Electronics began to buy and resell scanners for $47 each. Singh uses the perpetual system to account for inventories. The scanners are covered under a warranty that requires the company to replace any non-working scanner within 90 days. When a scanner is returned, the company simply throws it away and mails a new one from inventory to the customer. The company’s cost for a new scanner is only $27. Singh estimates warranty costs based on 15% of the number of units sold. The following transactions occurred in 2017 and 2018 (ignore GST and PST):

Required:
1. How much warranty expense should be reported for November and December 2017?

2. How much warranty expense should be reported for January 2018? (Round your intermediate calculations and final answer to the nearest whole number.)

3. What is the balance of the estimated warranty liability as of December 31, 2017?

4. What is the balance of the estimated warranty liability as of January 31, 2018?

5. Prepare journal entries to record ALL transactions and year-end adjustments (ignore sales taxes).

1.Record the sale of scanners to customers.

2.Record the cost of the November 15 sale.

3.Record the scanner warranty expense and liability at 15% of the units sold.

4.Record the cost of scanner warranty replacements.

5.Record the sale of scanners to customers.

6.Record the cost of the December 15 sale.

7.Record the cost of scanners warranty replacements.

8.Record the scanner warranty expense and liability at 15% of the units sold.

9.Record the sale of scanners to customers.

10.Record the cost of the January 14 sale.

11.Record the cost of scanner warranty replacements.

12.Record the scanner warranty expense and liability at 15% of the units sold.

On November 10, 2017, Singh Electronics began to buy and resell scanners for $47 each. Singh uses the perpetual system to account for inventories. The scanners are covered under a warranty that requires the company to replace any non-working scanner within 90 days. When a scanner is returned, the company simply throws it away and mails a new one from inventory to the customer. The company’s cost for a new scanner is only $27. Singh estimates warranty costs based on 15% of the number of units sold. The following transactions occurred in 2017 and 2018 (ignore GST and PST):

Required:
1. How much warranty expense should be reported for November and December 2017?

2. How much warranty expense should be reported for January 2018? (Round your intermediate calculations and final answer to the nearest whole number.)

3. What is the balance of the estimated warranty liability as of December 31, 2017?

4. What is the balance of the estimated warranty liability as of January 31, 2018?

5. Prepare journal entries to record ALL transactions and year-end adjustments (ignore sales taxes).

1.Record the sale of scanners to customers.

2.Record the cost of the November 15 sale.

3.Record the scanner warranty expense and liability at 15% of the units sold.

4.Record the cost of scanner warranty replacements.

5.Record the sale of scanners to customers.

6.Record the cost of the December 15 sale.

7.Record the cost of scanners warranty replacements.

8.Record the scanner warranty expense and liability at 15% of the units sold.

9.Record the sale of scanners to customers.

10.Record the cost of the January 14 sale.

11.Record the cost of scanner warranty replacements.

12.Record the scanner warranty expense and liability at 15% of the units sold.

6. A plant asset is acquired by a business on January 1, 2016, for $100,000. The asset's estimated residual value is $10,000 and its estimated life is 5 years. Management chooses to use straight-line depreciation.

On January 1, 2018, management revises the total useful life to 8 years and the residual value to $5,000.

Required:

Compute the balance in Accumulated Depreciation on January 1, 2018.

Compute the Depreciation Expense for the year ending December 31, 2018.

Compute the balance in Accumulated Depreciation on December 31, 2018.

Prepare the adjusting journal entry on December 31, 2018 for the year. Omit the explanation.

Frederick Inc. had the following activities during 2018:

Required:

1. What is the cost of direct materials used during 2018?
2. What are the total manufacturing costs incurred for 2018?
3. What is cost of goods manufactured for 2018?
4. What is cost of goods sold for 2018?

(a) ABC Company purchased land at a cost of $400,000,000 during 2018. ABC chooses to use the revaluation method of accounting for land. The fair value of the land is as follows at December 31, 2018 2019 and 2020:

2018 - $450,000,000
2019 - $360,000,000
2020 - $385,000,000

Required
(a) Record the journal entries to account for revaluation of the land at 31 December 2018, 2019 and 2020.

(b) Assume ABC Company chooses to apply the cost method for the land and that the above amounts are the recoverable amount of the land at 31 December each year. Record the necessary journal entries to account for the land at 31 December 2018, 2019 and 2020.

On January 2, 2018, the first year of operations, Brunswick Corp. issued 15,000 shares of $10 par value common stock for $15 per share.  On July 1, 2018, 2,000 of these shares were reacquired for $20 each. On September 1, 2018 Brunswick Corp. reissued 1,000 shares of its treasury stock for $22 per share. No other stock transactions occurred during the rest of fiscal year 2018. Use this information to determine the dollar amount that Brunswick will report on its fiscal year 2018 Balance Sheet for Paid in Capital Treasury Stock.

On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows:

Dreamworld had the following debt obligations outstanding during both years:

Construction loan, 10%             $500,000

             Long-term note, 12%                      $2,500,000

Required: What would Dreamworld's capitalized interest be in 2019 (assuming interest from 2018 does not compound in 2019)?

Assume that TDW Corporation (calendar-year-end) has 2018 taxable income of $650,000 for purposes of computing the §179 expense. The company acquired the following assets during 2018:  

a. What is the maximum amount of §179 expense TDW may deduct for 2018?

b. What is the maximum total depreciation, including §179 expense, that TDW may deduct in 2018 on the assets it placed in service in 2018 assuming no bonus depreciation

1. On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows:

   January 1, 2018	$	300,000
   September 1, 2018	$	450,000
   December 31, 2018	$	450,000
   March 31, 2019	$	450,000

   Dreamworld had the following debt obligations outstanding during both years:

   Construction loan, 10%             $500,000

                Long-term note, 12%                      $2,500,000

   Required: What would Dreamworld's capitalized interest be in 2019 (assuming interest from 2018 does not compound in 2019)?