On January 2, 2020, Pearl Company sells production equipment to Fargo Inc. for $52,000. Pearl 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, Pearl incurs costs related to warranties of $940. At December 31, 2020, Pearl estimates that $660 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).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 (2019–2020) for $800.
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 12:30, imamnaab5710
Consider a treasury bill with a rate of return of 5% and the following risky securities: security a: e(r) = .15; variance = .0400 security b: e(r) = .10; variance = .0225 security c: e(r) = .12; variance = .1000 security d: e(r) = .13; variance = .0625 the investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. the security the investor should choose as part of her complete portfolio to achieve the best cal would be a. security a b. security b c. security c d. security d
Answers: 3
You know the right answer?
On January 2, 2020, Pearl Company sells production equipment to Fargo Inc. for $52,000. Pearl includ...
Questions in other subjects:
History, 18.03.2021 22:50
Mathematics, 18.03.2021 22:50
Social Studies, 18.03.2021 22:50
Mathematics, 18.03.2021 22:50
Mathematics, 18.03.2021 22:50
History, 18.03.2021 22:50
Mathematics, 18.03.2021 22:50
