Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6) Casa Corporation is a custom residential homebuilder that began business in 2015. Any residence built by Casa has a two year warranty that covers

image text in transcribed

image text in transcribed
6) Casa Corporation is a custom residential homebuilder that began business in 2015. Any residence built by Casa has a two year warranty that covers both parts and labor. Casa estimates its warranty work to be 4% of the selling price of each residence. Casa's services are in high demand but given the quality of their craftsmanship, the company only builds 6 houses per year. Casa had Home Sale Revenue in 2015 of $4,065,000 and $4,305,000 in 2016. Additionally, Casa shares the following information regarding actual warranty claims: Cost of Warranty Work performed in 2015 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Jan - March April -June July-Sept Oct- Dec total Repairs performed on houses sold in 2015 $0 $0 $8,900 $1,700 $10,600 Cost of Warranty Work performed in 2016 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Jan - March April -June July-Sept Oct- Dec total Repairs performed on houses sold in 2015 $36,350 $48,800 $27,035 $20,000 $132,185 Repairs performed on houses sold in 2016 $_0 $_0 $11,600 $14 300 $25,900 total $36,350 $48,800 $38,635 $34,300 $158,085 Cost of Warranty Work performed in 2017 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Jan - March April -June July-Sppt Oct- Dec total Repairs performed on houses sold in 2015 $10,765 $15,000 $0 $0 $25,765 Repairs performed on houses sold in 2016 $34,855 $41,000 $28,200 $35,715 $139,770 Repairs performed on houses sold in 2017 $0 $0 $25,600 $19,000 $44,600 total 8457620 $567100 $53,800 $54,715 $210,135 Understanding that Casa reported an ending Warranty Payable balance on its 12/31/2017 Balance Sheet of $133,980, what was the Home Sale Revenue reported on the 12/31/2017 Income Statement? A) $4,284,000 B) $4,450,000 C) $5,253,375 D) $3,349,500 E) NOTA

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2018

Authors: Bernard J. Bieg, Judith Toland

28th edition

1337291056, 978-1337291057, 1337291137, 9781337291132, 9781337516686 , 978-1337291040

More Books

Students also viewed these Accounting questions

Question

3. How much information do we need to collect?

Answered: 1 week ago

Question

2. What types of information are we collecting?

Answered: 1 week ago

Question

5. How quickly can we manage to collect the information?

Answered: 1 week ago