Exercise 7. On Dec 1, 20XX, Diaz Company introduced a new product that included a one-year...

 

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Exercise 7. On Dec 1, 20XX, Diaz Company introduced a new product that included a one-year warranty on parts. In December, 1,000 units were sold. Diaz estimates that 5% of these will be brought back under the warranty for replacement of parts at an average cost of $80 per unit. Prepare (a) the adjusting entry needed at December 31 20XX for this contigent Liability and (b) the entry required in January 20X1, when a defiective unit is replaced for a cost of $50 of labor and $29 in parts from the Supplies. (a) (b) Exercise 8. For this problem please use dollars and cents and round to the nearest cent. Cindy Newer's regualr hourly rate is $18/hour with time-and-a-half for any hours worked per week over 40 hours in a week. During a week in April, Cindy works 47 hours. Using Exhibit 2 in Objective 2 from the Chapter, calculate the Federal Tax to be withheld. Also, using the Social Security and Medicare percentages used in the textbook, calculate those amounts to be withheld. Cindy lives in Nevada (no State Income Tax) and has no voluntary amounts withheld. Calculate Cindy's gross payroll for the week, amounts to be withheld, and her net pay (take home pay) for the week. Show the journal entry required for Cindy's payroll (please show amounts in dollars and cents). For this exercise, ignore the Employer Tax Journal Entry. Exercise 7. On Dec 1, 20XX, Diaz Company introduced a new product that included a one-year warranty on parts. In December, 1,000 units were sold. Diaz estimates that 5% of these will be brought back under the warranty for replacement of parts at an average cost of $80 per unit. Prepare (a) the adjusting entry needed at December 31 20XX for this contigent Liability and (b) the entry required in January 20X1, when a defiective unit is replaced for a cost of $50 of labor and $29 in parts from the Supplies. (a) (b) Exercise 8. For this problem please use dollars and cents and round to the nearest cent. Cindy Newer's regualr hourly rate is $18/hour with time-and-a-half for any hours worked per week over 40 hours in a week. During a week in April, Cindy works 47 hours. Using Exhibit 2 in Objective 2 from the Chapter, calculate the Federal Tax to be withheld. Also, using the Social Security and Medicare percentages used in the textbook, calculate those amounts to be withheld. Cindy lives in Nevada (no State Income Tax) and has no voluntary amounts withheld. Calculate Cindy's gross payroll for the week, amounts to be withheld, and her net pay (take home pay) for the week. Show the journal entry required for Cindy's payroll (please show amounts in dollars and cents). For this exercise, ignore the Employer Tax Journal Entry.

Answer rating: 100% (QA)

a To prepare the adjusting entry needed at December 31 20XX for the contingent liability related to the warranty we need to recognize the estimated wa... View the full answer