ABV manufactures and sells state-of-the-art MRI and other medical imaging devices to hospitals and medical rescarch centers. Some of ABC Co. transactions during the year 2017 are as follow: May 1,2017. Borrowed 6 million Euros as a note at 3.5% interest rate per annum. Interest should be paid and the note is due on May 1, 2018. July 10, 2017. Sold on account three MRI devices costing 185,000 Euros to White memorial hospital for 210,000 Euros each. July 25, 2017. Purchased merchandise on account from Intel Co. for 105,000 Euros. Terms, net 60 days. August 30, 2017. Collected in cash the amount of the transaction with White memorial hospital. ABV uses perpetual inventory system and closes its accounts on December 31. Journalize the necessary entries. Answers: Date Account title Debit Credit

ABV manufactures and sells state-of-the-art MRI and other medical imaging devices to hospitals and medical rescarch centers. Some of ABC Co. transactions during the year 2017 are as follow: May 1,2017. Borrowed 6 million Euros as a note at 3.5% interest rate per annum. Interest should be paid and the note is due on May 1, 2018. July 10, 2017. Sold on account three MRI devices costing 185,000 Euros to White memorial hospital for 210,000 Euros each. July 25, 2017. Purchased merchandise on account from Intel Co. for 105,000 Euros. Terms, net 60 days. August 30, 2017. Collected in cash the amount of the transaction with White memorial hospital. ABV uses perpetual inventory system and closes its accounts on December 31. Journalize the necessary entries. Answers: Date Account title Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(e) On December 31, 2015, Malton Company acquired a computer from Hamilton Corporation by issuing a $600,000 zero-interest-bearing note, payable in full on December 31, 2019. Malton Company’s credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $70,000 residual value. Prepare the journal entry for the purchase on December 31, 2015 and any necessary adjusting entries relative to depreciation (use straight-line) and amortization on December 31, 2016.
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Hazel Gird's products come with a one-year warranty. In 2014, sales totaled 2,500 units. It is expected that warranty repairs will average 10 per unit sold, with 30 percent of repairs completed in 2014 and 70 percent completed in 2015. How much warranty expense should Searches include in its 2014 income statement? Show solution.
6 Miele Appliances owed estimated warranty payable of $1000 at the end of 2016. During 2017, Miele made sales of $100000 and expects product warranties to cost 4% of the sales. During 2017, Miele paid $2800 for warranties. What is Miele's estimated warranty payable at the end of 2017? a $3 500 b $2 500 c $2 200 d $1 500
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Drama plc has a total balance on their receivables account at the year end of £54,500. After reviewing their customer accounts, Drama plc have decided to do the following: make a 50% specific provision relating to a debt of £9,200 create a general receivables provision of 2% Drama plc have a receivables provision brought forward of £2,850. What will be the value of the general receivables provision?£ 906 What will be the irrecoverable debt expense on the P or L? £ 2660 (Enter the values with no E sign, comma or decimal places)