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Question: The State Fair Company completed the following transactions during 2014. The annual accounting period ends on December 31, 2014. April Borrowed $700,000 from Borlaug Bank for general use; executed a 10- June July Dec. Received a $15,000 customer deposit from Ward Nefstead for services to Performed $3,750 of the services paid for by Ward Nefstead Received an electric bill for $27,860. State Fair will pay it next January Dec. Determined wages of $52,000 earned but not yet paid on December 31 Prepare journal entries for each of these transactions.Electronics4U manufactures high-end whole- home electronic systems. The company provides a 1-year warranty for all products sold. The company estimates that the warranty cost is $200 per unit sold, and it reported liability for estimated warranty costs of $1,000,000 at the beginning of this year. If, during the current year, the company sold 50,000 units for a total of $243 million and paid warranty claims of $7,500,000 on current and prior- year sales, what amount of liability would the company report on its balance sheet at the end of the current year? a) $2,500,000 b) 3,500,000 c) $9,000,000 d) $10,000,000 Assume that Cart Sales Company completed the following note payable transactions: 2016: Jul. 1 Purchased delivery truck costing $57,000 by issuing a one- Dec. Accrued interest on the note payable 2017: Jul. 1 Paid the note payable at maturity 1. How much interest expense must be accrued on December 31, 2016?2. Determine the amount of Cart Sales' final payment on July 1, 2017.3. How much interest expense will Cart Sales report for 2016 and for 2017?

Question: The State Fair Company completed the following transactions during 2014. The annual accounting period ends on December 31, 2014. April Borrowed $700,000 from Borlaug Bank for general use; executed a 10- June July Dec. Received a $15,000 customer deposit from Ward Nefstead for services to Performed $3,750 of the services paid for by Ward Nefstead Received an electric bill for $27,860. State Fair will pay it next January Dec. Determined wages of $52,000 earned but not yet paid on December 31 Prepare journal entries for each of these transactions.Electronics4U manufactures high-end whole- home electronic systems. The company provides a 1-year warranty for all products sold. The company estimates that the warranty cost is $200 per unit sold, and it reported liability for estimated warranty costs of $1,000,000 at the beginning of this year. If, during the current year, the company sold 50,000 units for a total of $243 million and paid warranty claims of $7,500,000 on current and prior- year sales, what amount of liability would the company report on its balance sheet at the end of the current year? a) $2,500,000 b) 3,500,000 c) $9,000,000 d) $10,000,000 Assume that Cart Sales Company completed the following note payable transactions: 2016: Jul. 1 Purchased delivery truck costing $57,000 by issuing a one- Dec. Accrued interest on the note payable 2017: Jul. 1 Paid the note payable at maturity 1. How much interest expense must be accrued on December 31, 2016?2. Determine the amount of Cart Sales' final payment on July 1, 2017.3. How much interest expense will Cart Sales report for 2016 and for 2017?

FINANCIAL ACCOUNTING
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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Question: The State Fair Company completed the following transactions during 2014. The annual accounting period ends on December 31, 2014. April Borrowed $700,000 from Borlaug Bank for general use; executed a 10- June July Dec. Received a $15,000 customer deposit from Ward Nefstead for services to Performed $3,750 of the services paid for by Ward Nefstead Received an electric bill for $27,860. State Fair will pay it next January Dec. Determined wages of $52,000 earned but not yet paid on December 31 Prepare journal entries for each of these transactions.Electronics4U manufactures high-end whole- home electronic systems. The company provides a 1-year warranty for all products sold. The company estimates that the warranty cost is $200 per unit sold, and it reported liability for estimated warranty costs of $1,000,000 at the beginning of this year. If, during the current year, the company sold 50,000 units for a total of $243 million and paid warranty claims of $7,500,000 on current and prior- year sales, what amount of liability would the company report on its balance sheet at the end of the current year? a) $2,500,000 b) 3,500,000 c) $9,000,000 d) $10,000,000 Assume that Cart Sales Company completed the following note payable transactions: 2016: Jul. 1 Purchased delivery truck costing $57,000 by issuing a one- Dec. Accrued interest on the note payable 2017: Jul. 1 Paid the note payable at maturity 1. How much interest expense must be accrued on December 31, 2016?2. Determine the amount of Cart Sales' final payment on July 1, 2017.3. How much interest expense will Cart Sales report for 2016 and for 2017?
Transcribed Image Text:Question: The State Fair Company completed the following transactions during 2014. The annual accounting period ends on December 31, 2014. April Borrowed $700,000 from Borlaug Bank for general use; executed a 10- June July Dec. Received a $15,000 customer deposit from Ward Nefstead for services to Performed $3,750 of the services paid for by Ward Nefstead Received an electric bill for $27,860. State Fair will pay it next January Dec. Determined wages of $52,000 earned but not yet paid on December 31 Prepare journal entries for each of these transactions.Electronics4U manufactures high-end whole- home electronic systems. The company provides a 1-year warranty for all products sold. The company estimates that the warranty cost is $200 per unit sold, and it reported liability for estimated warranty costs of $1,000,000 at the beginning of this year. If, during the current year, the company sold 50,000 units for a total of $243 million and paid warranty claims of $7,500,000 on current and prior- year sales, what amount of liability would the company report on its balance sheet at the end of the current year? a) $2,500,000 b) 3,500,000 c) $9,000,000 d) $10,000,000 Assume that Cart Sales Company completed the following note payable transactions: 2016: Jul. 1 Purchased delivery truck costing $57,000 by issuing a one- Dec. Accrued interest on the note payable 2017: Jul. 1 Paid the note payable at maturity 1. How much interest expense must be accrued on December 31, 2016?2. Determine the amount of Cart Sales' final payment on July 1, 2017.3. How much interest expense will Cart Sales report for 2016 and for 2017?
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