A company sold 152 bikes at $225 each The bikes carry a 3 year warranty for defects The company estimates that they will have to repair the bikes and the repair costs will average 5 of the total selling price The estimated warranty liability at the beginning of the year was $1,400 and $1,900 in claims were actually incurred during the year to honor the warranty What was the ending balance in the estimated warranty liability account A $2,210 B $1,590 C $500 D $1,710 E $1,210 QUESTION 1 Use the Present Value tables at the end of Appendix A of your textbook to answer the following questions Round each portion of your answer to the nearest dollar A company sold 152 bikes at $225 each The bikes carry a 3 year warranty for defects The company estimates that they will have to repair the bikes and the repair costs will average 5 of the total selling price The estimated warranty liability at the beginning of the year was $1,400 and $1,900 in claims were actually incurred during the year to honor the warranty What was the ending balance in the estimated warranty liability account A $2,210 B $1,590 C $500 D $1,710 E $1,210 QUESTION 2 Use the following information to answer the next 2 questions On January 1, 2015, a company purchased equipment at a contract price of $56,000 The company made a cash down payment of $6,000 and signed a 3 year, 6 non interest bearing note for the balance, due on December 31, 2017 Interest is compounded annually 2 The equipment account would be debited for what amount on January 1, 2015 A $47,981 B $47,040 C $42,000 D $41,981 E $45,920 QUESTION 3 Using the information from above The carrying value of the note on December 31, 2016 , after adjustment, would be A $53,933 B $46,068 C $44,500 D $44,000 E $47,170 QUESTION 4 On January 1, 2015 a company purchased a $180,000 machine and made a cash down payment of $60,000 A four year, 8 note payable was signed for the balance The note will be paid in sixteen equal quarterly payments starting on March 31, 2015 What is the amount of each of the equal quarterly payments that will be paid on the note A $8,838 B $13,256 C $7,500 D $5,460 E $13,558 QUESTION 5 Which of the following is true A If a bond sells for more than face value, the market rate of interest was more than the coupon interest B The coupon rate determines the yearly interest expense on bonds C The current market price of the bond does not affect the amount that the company pays in periodic cash interest payments D Interest expense increases each period when a bond is issued at a premium E Debenture bonds are secured by specific assets of the company

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A company sold 152 bikes at $225 each. The bikes carry a 3 year warranty for defects. The company estimates that they will have to

A company sold 152 bikes at $225 each. The bikes carry a 3 year warranty for defects. The company estimates that they will have to repair the bikes and the repair costs will average 5% of the total selling price. The estimated warranty liability at the beginning of the year was $1,400 and $1,900 in claims were actually incurred during the year to honor the warranty. What was the ending balance in the estimated warranty liability account?

	A.	$2,210
	B.	$1,590
	C.	$500
	D.	$1,710
	E.	$1,210

QUESTION 1

Use the Present Value tables at the end of Appendix A of your textbook to answer the following questions. Round each portion of your answer to the nearest dollar.

A company sold 152 bikes at $225 each. The bikes carry a 3 year warranty for defects. The company estimates that they will have to repair the bikes and the repair costs will average 5% of the total selling price. The estimated warranty liability at the beginning of the year was $1,400 and $1,900 in claims were actually incurred during the year to honor the warranty. What was the ending balance in the estimated warranty liability account?

A.
$2,210

B.
$1,590

C.
$500

D.
$1,710

E.
$1,210

QUESTION 2

Use the following information to answer the next 2 questions:

On January 1, 2015, a company purchased equipment at a contract price of $56,000. The company made a cash down payment of $6,000 and signed a 3 year, 6% non-interest bearing note for the balance, due on December 31, 2017. Interest is compounded annually.

2. The equipment account would be debited for what amount on January 1, 2015?

A.
$47,981

B.
$47,040

C.
$42,000

D.
$41,981

E.
$45,920

QUESTION 3

Using the information from above...

The carrying value of the note on December 31, 2016, after adjustment, would be

A.
$53,933

B.
$46,068

C.
$44,500

D.
$44,000

E.
$47,170

QUESTION 4

On January 1, 2015 a company purchased a $180,000 machine and made a cash down payment of $60,000. A four year, 8% note payable was signed for the balance. The note will be paid in sixteen equal quarterly payments starting on March 31, 2015. What is the amount of each of the equal quarterly payments that will be paid on the note?

A.
$8,838

B.
$13,256

C.
$7,500

D.
$5,460

E.
$13,558

QUESTION 5

Which of the following is true?

	A.	If a bond sells for more than face value, the market rate of interest was more than the coupon interest.
	B.	The coupon rate determines the yearly interest expense on bonds.
	C.	The current market price of the bond does not affect the amount that the company pays in periodic cash interest payments.
	D.	Interest expense increases each period when a bond is issued at a premium.
	E.	Debenture bonds are secured by specific assets of the company.