Identify the amount of estimated warranty expense that is to be reported for the copier during the Year 1.

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Answer 1

Question

Chapter 11, Problem 10E

1.

To determine

Identify the amount of estimated warranty expense that is to be reported for the copier during the Year 1.

2.

To determine

Identify the amount of estimated warranty liability for the copier as of December 3 of Year 1.

3.

To determine

Identify the amount of estimated warranty liability for 31^st December, Year 2.

4.

To determine

Prepare the journal entries to record the following situations:

(a) To record the copier’s sale

(b) To record the adjustments on December 31, Year 1 and to recognize the warranty expense

(c) To record the repairs that occurs in January of Year 2.

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Hitzu Co. sold a copier (that costs $6,500) for $13,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 5% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $140 for materials taken from the repair parts inventory. These are the only repairs required in Year 2 for this copier. 1. How much warranty expense does the company report for this copier in Year 1? Warranty expense 2. How much is the estimated warranty liability for this copier as of December 31 of Year 1? Estimated warranty liability 3. How much is the estimated warranty liability for this copier as of December 31 of Year 2?

Hitzu Co. sold a copier (that costs $5,500) for $11,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 3% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $123 for materials taken from the repair parts inventory. These are the only repairs required in Year 2 for this copier.

Hitzu Company sold a copler (that costs $7.500) for $15,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 4% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2 the copler requires on-site repairs that are completed the same day. The repairs cost $111 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copler.

Answer 2

Question

Chapter 11, Problem 10E

1.

To determine

Identify the amount of estimated warranty expense that is to be reported for the copier during the Year 1.

2.

To determine

Identify the amount of estimated warranty liability for the copier as of December 3 of Year 1.

3.

To determine

Identify the amount of estimated warranty liability for 31^st December, Year 2.

4.

To determine

Prepare the journal entries to record the following situations:

(a) To record the copier’s sale

(b) To record the adjustments on December 31, Year 1 and to recognize the warranty expense

(c) To record the repairs that occurs in January of Year 2.

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Answer 3

Question

Chapter 11, Problem 10E

1.

To determine

Identify the amount of estimated warranty expense that is to be reported for the copier during the Year 1.

2.

To determine

Identify the amount of estimated warranty liability for the copier as of December 3 of Year 1.

3.

To determine

Identify the amount of estimated warranty liability for 31^st December, Year 2.

4.

To determine

Prepare the journal entries to record the following situations:

(a) To record the copier’s sale

(b) To record the adjustments on December 31, Year 1 and to recognize the warranty expense

(c) To record the repairs that occurs in January of Year 2.

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Answer 4

Question

Chapter 11, Problem 10E

1.

To determine

Identify the amount of estimated warranty expense that is to be reported for the copier during the Year 1.

2.

To determine

Identify the amount of estimated warranty liability for the copier as of December 3 of Year 1.

3.

To determine

Identify the amount of estimated warranty liability for 31^st December, Year 2.

4.

To determine

Prepare the journal entries to record the following situations:

(a) To record the copier’s sale

(b) To record the adjustments on December 31, Year 1 and to recognize the warranty expense

(c) To record the repairs that occurs in January of Year 2.

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Answer 5

Chapter 11, Problem 10E

1.

To determine

Identify the amount of estimated warranty expense that is to be reported for the copier during the Year 1.

2.

To determine

Identify the amount of estimated warranty liability for the copier as of December 3 of Year 1.

3.

To determine

Identify the amount of estimated warranty liability for 31^st December, Year 2.

4.

To determine

Prepare the journal entries to record the following situations:

(a) To record the copier’s sale

(b) To record the adjustments on December 31, Year 1 and to recognize the warranty expense

(c) To record the repairs that occurs in January of Year 2.

Answer 6

Chapter 11, Problem 10E

1.

To determine

Identify the amount of estimated warranty expense that is to be reported for the copier during the Year 1.

Answer 7

Chapter 11, Problem 10E

1.

To determine

Identify the amount of estimated warranty expense that is to be reported for the copier during the Year 1.

Answer 8

2.

To determine

Identify the amount of estimated warranty liability for the copier as of December 3 of Year 1.

Answer 9

2.

To determine

Identify the amount of estimated warranty liability for the copier as of December 3 of Year 1.

Answer 10

3.

To determine

Identify the amount of estimated warranty liability for 31^st December, Year 2.

Answer 11

3.

To determine

Identify the amount of estimated warranty liability for 31^st December, Year 2.

Answer 12

4.

To determine

Prepare the journal entries to record the following situations:

(a) To record the copier’s sale

(b) To record the adjustments on December 31, Year 1 and to recognize the warranty expense

(c) To record the repairs that occurs in January of Year 2.

Answer 13

4.

To determine

Prepare the journal entries to record the following situations:

(a) To record the copier’s sale

(b) To record the adjustments on December 31, Year 1 and to recognize the warranty expense

(c) To record the repairs that occurs in January of Year 2.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 11 - On December 1, a company signed a 6,000, 90-day,...Ch. 11 - Prob. 2MCQ Ch. 11 - Prob. 3MCQ Ch. 11 - Prob. 4MCQ Ch. 11 - Prob. 5MCQ Ch. 11 - Prob. 1DQ Ch. 11 - Prob. 2DQ Ch. 11 - What are the three important questions concerning...Ch. 11 - Prob. 4DQ Ch. 11 - Prob. 5DQ

Identify the amount of estimated warranty expense that is to be reported for the copier during the Year 1.

Solution Summary: The author identifies the amount of estimated warranty expense that is to be reported for the copier during the Year 1.

Videos

Identify the amount of estimated warranty expense that is to be reported for the copier during the Year 1.

Identify the amount of estimated warranty liability for the copier as of December 3 of Year 1.

Identify the amount of estimated warranty liability for 31^st December, Year 2.

Prepare the journal entries to record the following situations:

(a) To record the copier’s sale

(b) To record the adjustments on December 31, Year 1 and to recognize the warranty expense

(c) To record the repairs that occurs in January of Year 2.

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Chapter 11 Solutions

Identify the amount of estimated warranty expense that is to be reported for the copier during the Year 1.

Solution Summary: The author identifies the amount of estimated warranty expense that is to be reported for the copier during the Year 1.

Videos

Identify the amount of estimated warranty expense that is to be reported for the copier during the Year 1.

Identify the amount of estimated warranty liability for the copier as of December 3 of Year 1.

Identify the amount of estimated warranty liability for 31st December, Year 2.

Prepare the journal entries to record the following situations: (a) To record the copier’s sale (b) To record the adjustments on December 31, Year 1 and to recognize the warranty expense (c) To record the repairs that occurs in January of Year 2.

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Chapter 11 Solutions

Identify the amount of estimated warranty liability for 31^st December, Year 2.

Prepare the journal entries to record the following situations:

(a) To record the copier’s sale

(b) To record the adjustments on December 31, Year 1 and to recognize the warranty expense

(c) To record the repairs that occurs in January of Year 2.