On September 11, 2012, Home Store sells a mower for $500 with a one- year warranty that covers parts. Warranty expense is estimated at 8% of sales. On July 24, 2013, the mower is brought in for repairs covered under the warranty requiring $35 in materials taken from the Repair Parts Inventory. Prepare the September 11, 2012, entry to record the mower sale, and the July 24, 2013, entry to record the warranty repairs.
Answer to relevant QuestionsCompute the times interest earned for Park Company, which reports income before interest expense and income taxes of $1,885,000, and interest expense of $145,000. Interpret its times interest earned (assume that its ...Sylvestor Systems borrows $ 110,000 cash on May 15, 2013, by signing a 60-day, 12% note. 1. On what date does this note mature? 2. Suppose the face value of the note equals $ 110,000, the principal of the loan. Prepare the ...Nishi Corporation prepares financial statements for each month- end. As part of its accounting process, estimated income taxes are accrued each month for 30% of the current month’s net income. The income taxes are paid in ...On January 8, the end of the first weekly pay period of the year, Regis Company’s payroll register showed that its employees earned $ 22,760 of office salaries and $ 65,840 of sales salaries. Withholdings from the ...MLS Company has five employees, each of whom earns $ 1,600 per month and is paid on the last day of each month. All five have been employed continuously at this amount since January 1. MLS uses a payroll bank account and ...
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