Accrued Product Warranty

Stealth Devices Inc. warrants its products for one year. The estimated product warranty is 7.5% of sales. Assume that sales were $709,000 for July. In August, a customer received warranty repairs requiring $39,881 of parts.

a. Determine the warranty liability at July 31, the end of the first month of the current year. $

b. What accounts are decreased for the warranty work provided in August? SelectParts Inventory Expense and Warranty Repair ExpenseProduct Warranty Payable and CashProduct Warranty Payable and Parts InventoryWarranty Repair Expense and CashItem 2

Calculate Payroll

An employee earns $40 per hour and 1.75 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 60 hours during the week, and that the gross pay prior to the current week totaled $58,000. Assume further that the social security tax rate was 6.0% (on earnings up to $100,000), the Medicare tax rate was 1.5%, and federal income tax to be withheld was $690.

a. Determine the gross pay for the week. $

b. Determine the net pay for the week. Round intermediate calculations and your final answer to the nearest cent, if rounding is required. $