Question
1. Spring Company offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be
1. Spring Company offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $967,000 to be paid during January of the following year. The journal entry on December 31 to record the bonuses is:
Answer:
2. On November 1, Bo company signed a 120-day, 10% note payable, with a face value of $11,700. What is the adjusting entry for the accrued interest at December 31 on the note?
Answer:
3. Diva Company is required by law to collect and remit sales taxes to the state. If Diva has $4,000 of cash sales that are subject to 9% sales tax, what is the journal entry to record the cash sales?
Answer:
4. During August, Boxer Company sells $346,000 in merchandise that has a one-year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $10,800 before adjustment. Customers return merchandise for warranty repairs that used $7,400 in parts for repairs. The entry to record the estimated warranty expense for the month is:
Answer:
5. On April 12, Hong Company agrees to accept a 60 day, 10%, 4,900 note from Indigo Company to extend the due date of an overdue account, what is the journal entry needed to record the transaction by Indigo Company?
Answer:
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