On December 31, 2026, Dieker Company sells equipment to Tabor Inc. for $125,000. Dieker includes a 1-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2026. Dieker estimates the prices to be $122,000 for the equipment and $3,000 for the cost of the warranty. In addition to the assurance warranty, Dieker sold an extended warranty (service type warranty) for an additional 2 years (20x2-20x3) for $2,000. Prepare the journal entry to record this transaction on December 31, 20x1.
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Please do not give solution in image format ?
![On December 31, 2026, Dieker Company sells equipment to Tabor Inc. for $125,000. Dieker
includes a 1-year assurance warranty service with the sale of all its equipment. The
customer receives and pays for the equipment on December 31, 2026. Dieker estimates the
prices to be $122,000 for the equipment and $3,000 for the cost of the warranty.
In addition to the assurance warranty, Dieker sold an extended warranty (service type
warranty) for an additional 2 years (20x2-20x3) for $2,000.
Prepare the journal entry to record this transaction on December 31, 20x1.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F60f07f2b-5e08-4d8a-9a11-065f82b2fde5%2F6ff3c7d6-90c8-4c4f-b00e-e2c16baf3e24%2Fhss2i0m_processed.jpeg&w=3840&q=75)
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- On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.On December 31, 2023, Sablok Company sells production equipment to Tang Inc. for $50,000. Sablok includes a one-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2023. Sablok estimates the prices to be $48,800 for the equipment and $1,200 for the cost of warranty. Instructions Are the sale of the equipment and the warranty separate performance obligations within the contract? Explain. Prepare a single compound journal entry to record this transaction on December 31, 2024. Ignore any related cost of goods sold entry. Repeat the requirements for part (b), assuming that, in addition to the assurance warranty, Sablok sold an extended warranty (service-type warranty) for an additional two years (2024–2025) for $800. (Hint: Use unearned revenue).On December 31, 2022, Delta Company sells equipment to Tchefunkte Inc. for $125,000. Delta includes a 1-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2022. Delta estimates the prices to be $122,000 for the equipment and $3,000 for the cost of the warranty. In addition to the assurance warranty, Delta sold an extended warranty for an additional 2 years for $3,000. How much warranty revenue should Delta recognize in 2022?
- On January 2, 2025, Ivanhoe Company sells production equipment to Kingbird Inc. for $48,000. Ivanhoe includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2025. During 2025, Ivanhoe incurs costs related to warranties of $910. At December 31, 2025, Ivanhoe estimates that $660 of warranty costs will be incurred in the second year of the warranty. (a) Show Transcribed Text Prepare the journal entry to record this transaction on January 2, 2025, and on December 31, 2025 (assuming financial statements are prepared on December 31, 2025). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Show Transcribed Text (b) Date Account Titles and Explanation Show…On January 2, 2020, Cullumber Company sells production equipment to Fargo Inc. for $52,000. Cullumber includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Cullumber incurs costs related to warranties of $940. At December 31, 2020, Cullumber estimates that $660 of warranty costs will be incurred in the second year of the warranty. Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020 (assuming financial statements are prepared on December 31, 2020). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Repeat the requirements for (a), assuming that in addition to the assurance warranty, Cullumber sold an extended warranty (service-type warranty) for an additional 2 years…On January 2, 2025, Sunland Company sells production equipment to Bramble Inc. for $54,000. Sunland includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2025. During 2025, Sunland incurs costs related to warranties of $940. At December 31, 2025, Sunland estimates that $680 of warranty costs will be incurred in the second year of the warranty. (a) Prepare the journal entry to record this transaction on January 2, 2025, and on December 31, 2025 (assuming financial statements are prepared on December 31, 2025). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
- On January 2, 2020, Culver Company sells production equipment to Fargo Inc. for $ 48,000. Culver includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Culver incurs costs related to warranties of $ 910. At December 31, 2020, Culver estimates that $ 640 of warranty costs will be incurred in the second year of the warranty. (a) Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020 (assuming financial statements are prepared on December 31, 2020). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit CrediOn January 2, 2020, Whispering Company sells production equipment to Fargo Inc. for $ 48,000. Whispering includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Whispering incurs costs related to warranties of $930. At December 31, 2020, Whispering estimates that $ 610 of warranty costs will be incurred in the second year of the warranty. (a) Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020 (assuming financial statements are prepared on December 31, 2020). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit CrediOn January 2, 2020, Whispering Company sells production equipment to Fargo Inc. for $ 48,000. Whispering includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Whispering incurs costs related to warranties of $ 930. At December 31, 2020, Whispering estimates that $610 of warranty costs will be incurred in the second year of the warranty. (a) Your answer has been saved. See score details after the due date. Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020 (assuming financial statements are prepared on December 31, 2020). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credi Jan. 2, 2020 cash 48000 Sales Revenue During 2020 Warranty Expense 930…
- On January 2, 2020, Grando Company sells production equipment to Fargo Inc. for $50,000. Grando includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Grando incurs costs related to warranties of $900. At December 31, 2020, Grando estimates that $650 of warranty costs will be incurred in the second year of the warranty. Instructions a. Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020 (assuming financial statements are prepared on December 31, 2020). b. Repeat the requirements for (a), assuming that in addition to the assurance warranty, Grando sold an extended warranty (service-type warranty) for an additional 2 years (2022–2023) for $800.On January 2, 2020, Crane Company sells production equipment to Fargo Inc. for $46,000. Crane includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Crane incurs costs related to warranties of $930. At December 31, 2020, Crane estimates that $620 of warranty costs will be incurred in the second year of the warranty. Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020 (assuming financial statements are prepared on December 31, 2020). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)On January 2, 2020, Monty Company sells production equipment to Fargo Inc. for $47,000. Monty includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Monty incurs costs related to warranties of $870. At December 31, 2020, Monty estimates that $690 of warranty costs will be incurred in the second year of the warranty. (a) Your answer is correct. Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020 (assuming financial statements are prepared on December 31, 2020). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 2, 2020 Cash 47,000 Sales Revenue 47,000 ng 2020 Warranty Expense 870 Cash, Labor, Parts 870 31, 2020 Warranty Expense 690 Warranty…
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