1 On November 1, 2019, Franco Corporation purchased equipment costing $20,000 by giving a 6%, 90-day note....
Question:
1
On November 1, 2019, Franco Corporation purchased equipment costing $20,000 by giving a 6%, 90-day note. Prepare general journal entries to record:
a) The acquisition of the equipment
b) The year end accrual of interest at December 31 the payment of the note on January 31.
Problem 2
During the first quarter of 2020, Pouncey Products sold 40,000 units of its best-selling product. Pouncey expects 2% of these units to be returned for repair under warranty. The typical cost to repair items under warranty is $10.
The actual costs incurred to repair products under warranty ended up being $7,100.
Prepare the journal entries Pouncey would make to estimate its warranty expense for the quarter, and an entry to record the actual warranty costs incurred.
Problem 3
List 3 things that would be withheld from an employee’s paycheck and 3 payroll taxes levied against an employer.
Problem 4
Explain the difference between a capital lease and an operating lease and give an example of each.
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta