Q1: What is an onerous contract? Give two examples of an onerous contract.                Q2: Alvarado Company sells a machine for $7,400 with a 12-month warranty agreement that requires the company to replace all defective parts and to provide the repair labor at no cost to the customers. With sales being made evenly throughout the year, the company sells 600 machines in 2022 (warranty expenditures are expected half in 2022 and half in 2023). As a result of product testing, the company estimates that the total warranty cost is $390 per machine ($170 parts and $220 labor). Instructions Assuming that actual warranty expenditures occur exactly as estimated, what journal entries would be made relative to the following facts? Sale of machinery and warranty expenditures occur in 2022. Warranty accrual on December 31, 2022. Warranty expenditures occur in 2023. What amount, if any, is disclosed in the statement of financial position as a liability for future warranty expenditures as of December 31, 2022?

SorCo. Inc. has just entered into a sale agreement with a customer. The contract is for $600,000. However, the payments will be made as follows: 1 August 20X1 on date of delivery $400,000; 1 August 20X2 $100,000 and 1 August 20X3 $100,000. SorCo has estimated that the interest rate required for this customer is 8%. SorCo follows IFRS. Required: Prepare the journal entry required to record the sale on 1 August 20X1 and the receipt of cash on 1 August 20X2 and 20X3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to the nearest whole dollar.)

Shamrock Company sells a machine for $7,920 with a 12-month warranty agreement that requires the company to replace all defective parts and to provide the repair labor at no cost to the customers. With sales being made evenly throughout the year, the company sells 540 machines in 2025 (warranty expense is incurred half in 2025 and half in 2026). As a result of product testing, the company estimates that the total warranty cost is $334 per machine ($144 parts and $190 labor). Assuming that actual warranty costs are incurred exactly as estimated, what journal entries would be made relative to the following facts? Use "Inventory" account to record the parts portion of the warranty expense. (a) Sale of machinery and warranty expense incurred in 2025. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)…

Nash Company sells a machine for $7,300 with a 12-month warranty agreement that requires the company to replace all defective parts and to provide the repair labor at no cost to the customers. With sales being made evenly throughout the year, the company sells 480 machines in 2025 (warranty expense is incurred half in 2025 and half in 2026). As a result of product testing, the company estimates that the total warranty cost is $338 per machine ($148 parts and $190 labor). Assuming that actual warranty costs are incurred exactly as estimated, what journal entries would be made relative to the following facts? Use "Inventory" account to record the parts portion of the warranty expense. (a) Sale of machinery and warranty expense incurred in 2025. (If no entry is required, select "No Entry" for the account tities and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries

On December 31, 2020, ABC Co. purchased a machine under a deferred payment contract where it is required to make 8 annual payments of P140,000 beginning December 31, 2021. IF interest rate is 8%, the purchase price of the machine must be closest to *   P1,389,190 P1,120,000 P 868,900 P804,530

Use the following information for the next two questions. Funan Industries purchases new specialized manufacturing equipment on July 1, 2019. The equipment cash price is P79,000. Funan signs a deferred payment contract that provides for a down payment of P10,000 and an 8-year note for P103,472. The note is to be paid in 8 equal annual payments of P12,934. The payments include 10% interest and are made on June 30 of each year, beginning June 30, 2020. (1) The carrying amount of the note payable on December 31, 2020 is a. P66,115 b. P62,966  c. P59,818 d. P56,329 (2) The total interest expense for the year ended December 31, 2020 is a. P6,900  b. P6,612 c. P6,599 d. P5,982

N11. Account

Please help me with all answers thanku

Value Dealership Inc. markets and sells the vehicles to retail customers. Along with a new vehicle purchase, a customer will receive a free annual maintenance contract for one year from the date of purchase. The standalone selling price of a vehicle is $30,000 and the standalone selling price for the annual maintenance contract is $500. During October 2020, Value Dealership Inc. sold 72 vehicles for $30,250 per vehicle, each with a free annual maintenance contract. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. a.) Ignoring the cost entries, record the journal entry in October 2020 for Value Dealership’s sale of vehicles with the associated maintenance contracts to customers. b.) Assume the same information above except that the standalone selling price of the annual maintenance contract is not known because this was the first time Value Dealership offered the service. Value Dealership is uncertain as to what services, on average, a customer…

4. Bonita.com sells 6800 units of its product for $460 each. The selling price includes a one- year warranty on parts. It is expected that 3% of the units will be defective and that repair costs will average $40 per unit. In the year of sale, warranty contracts are honored on 120 units for a total cost of $4800. What amount should Bonita.com accrue on December 31 for estimated warranty costs? Select answer from the options below a. $8160 b. $32640 c. $ 4800 d. $3360