Tec Inc. produces and sells computers, providing customers with a one-year warranty on all its products. It is estimated that the company incurs approximately $100 of warranty expense on each computer sold. During 2023, the company sold 600 computers. All warranty transactions are recorded on December 31. What is the journal entry to record the estimated warranty liability? Select one: a. Debit Warranty Expense $60,000; credit Estimated Warranty Liability $60,000 b. Debit Warranty Expense $100; credit Unearned Warranty Revenue $100 c. Debit Warranty Expense $60,000; credit Warranty Revenue $60,000 d. Debit Warranty Expense $60,000; credit Unearned Warranty Revenue $60,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Please don't use chat gpt. Answer the two questions. This are just short. Thank you
Tec Inc. produces and sells computers, providing customers with a one-year warranty on all its
products. It is estimated that the company incurs approximately $100 of warranty expense on each
computer sold. During 2023, the company sold 600 computers. All warranty transactions are
recorded on December 31. What is the journal entry to record the estimated warranty liability?
Select one:
a. Debit Warranty Expense $60,000; credit Estimated Warranty Liability $60,000
b. Debit Warranty Expense $100; credit Unearned Warranty Revenue $100
c. Debit Warranty Expense $60,000; credit Warranty Revenue $60,000
d. Debit Warranty Expense $60,000; credit Unearned Warranty Revenue $60,000
Marcus Corp. signed a note payable with Ryan Company on January 1, 2023. Marcus borrowed $3,000 from Ryan at a
rate of 5%. Both interest and principal are payable on June 30, 2023. How would the journal entry to record the note on
January 1, 2023, for Marcus Corp. impact its equity section?
Select one:
a. Decreased by $750
b. Decreased by $3,075
c. Increased by $3,000
d. $0
Transcribed Image Text:Tec Inc. produces and sells computers, providing customers with a one-year warranty on all its products. It is estimated that the company incurs approximately $100 of warranty expense on each computer sold. During 2023, the company sold 600 computers. All warranty transactions are recorded on December 31. What is the journal entry to record the estimated warranty liability? Select one: a. Debit Warranty Expense $60,000; credit Estimated Warranty Liability $60,000 b. Debit Warranty Expense $100; credit Unearned Warranty Revenue $100 c. Debit Warranty Expense $60,000; credit Warranty Revenue $60,000 d. Debit Warranty Expense $60,000; credit Unearned Warranty Revenue $60,000 Marcus Corp. signed a note payable with Ryan Company on January 1, 2023. Marcus borrowed $3,000 from Ryan at a rate of 5%. Both interest and principal are payable on June 30, 2023. How would the journal entry to record the note on January 1, 2023, for Marcus Corp. impact its equity section? Select one: a. Decreased by $750 b. Decreased by $3,075 c. Increased by $3,000 d. $0
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