Business, 11.12.2019 17:31 monaec1757
Hitzu co. sold a copier costing $4,800 with a two-year parts warranty to a customer on august 16, 2015, for $6,000 cash. hitzu uses the perpetual inventory system. on november 22, 2016, the copier requires on-site repairs that are completed the same day. the repairs cost $209 for materials taken from the repair parts inventory. these are the only repairs required in 2016 for this copier.
based on experience, hitzu expects to incur warranty costs equal to 4% of dollar sales. it records warranty expense with an adjusting entry at the end of each year.
required:
1. how much warranty expense does the company report in 2015 for this copier?
2. how much is the estimated warranty liability for this copier as of december 31, 2015?
3. how much warranty expense does the company report in 2016 for this copier?
4. how much is the estimated warranty liability for this copier as of december 31, 2016?
5. prepare journal entries to record (a) the copier's sale; (b) the adjustment on december 31, 2015, to recognize the warranty expense; and (c) the repairs that occur in november 2016.
Answers: 2
Business, 22.06.2019 08:00, browneyedbaby20
Lavage rapide is a canadian company that owns and operates a large automatic car wash facility near montreal. the following table provides data concerning the company’s costs: fixed cost per month cost per car washed cleaning supplies $ 0.70 electricity $ 1,400 $ 0.07 maintenance $ 0.15 wages and salaries $ 4,900 $ 0.30 depreciation $ 8,300 rent $ 1,900 administrative expenses $ 1,400 $ 0.03 for example, electricity costs are $1,400 per month plus $0.07 per car washed. the company expects to wash 8,000 cars in august and to collect an average of $6.50 per car washed. the actual operating results for august appear below. lavage rapide income statement for the month ended august 31 actual cars washed 8,100 revenue $ 54,100 expenses: cleaning supplies 6,100 electricity 1,930 maintenance 1,440 wages and salaries 7,660 depreciation 8,300 rent 2,100 administrative expenses 1,540 total expense 29,070 net operating income $ 25,030 required: calculate the company's revenue and spending variances for august.
Answers: 3
Business, 22.06.2019 17:40, gabe2111
Take it all away has a cost of equity of 11.11 percent, a pretax cost of debt of 5.36 percent, and a tax rate of 40 percent. the company's capital structure consists of 67 percent debt on a book value basis, but debt is 33 percent of the company's value on a market value basis. what is the company's wacc
Answers: 2
Hitzu co. sold a copier costing $4,800 with a two-year parts warranty to a customer on august 16, 20...
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