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500 dla ep al ow 00 ba bl an ed Q1: The following transactions of Golden Company occurred during 2015 and beginning balance of
500 dla ep al ow 00 ba bl an ed Q1: The following transactions of Golden Company occurred during 2015 and beginning balance of Warranty Payable given as follows. Warranty Payable January 1 March 1 1,600 Midland Company issued 8%, 20-year bond payable with maturity value of $600,000. The issue price of the bond is 85. The amount collected in cash. Interest will be paid semi- annually at each June 30 and Dec31. Borrowed $420,000 from Brooks Company on a 7-year, 10% note payable that calls for $60,000 annual installment payments plus interest. March 15 Company is a party to a lawsuit of $275,000. Company's attorney is certain that it is probable that company will lose lawsuit. April 15 June 30 Dec 31 Dec 31 Dec 31 Warranty claims paid in the amount of $2,400 Paid the first semiannual interest of the 8%, 20-year bond issued at January 1. Accrued warranty expense, which is estimated at 0,5% of sales of $75.000 for 2015. Record Accrued interest on Brooks' long-term note payable. Paid the second semiannual interest of the 8%, 20-year bond issued at January 1. Requirements: 1. Journalize the transactions. Show your calculations. (8 journal entries x 7 points each=56 points) 2. Calculate and show the ending balance of warranty payable (4 points)
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