Brief Exercise 13-2 Upland Company borrowed $142,800 on November 1, 2014, by signing a $142,800, 8%, 3-month note. Prepare Uplands November 1, 2014, entry; the December 31, 2014, annual adjusting entry; and the February 1, 2015, entry. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 11/1/14 12/31/14 2/1/15 Brief Exercise 13-3 Takemoto Corporation borrowed $74,080 on November 1, 2014, by signing a $77,080, 3-month, zero-interest-bearing note. Prepare Takemotos November 1, 2014, entry; the December 31, 2014, annual adjusting entry; and the February 1, 2015, entry. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 11/1/14 12/31/14 2/1/15 (To record interest) (To pay note) Brief Exercise 13-5 Sport Pro Magazine sold 27,960 annual subscriptions on August 1, 2014, for $22 each. Prepare Sport Pros August 1, 2014, journal entry and the December 31, 2014, annual adjusting entry, assuming the magazines are published and delivered monthly. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 8/1/14 12/31/14 Brief Exercise 13-6 Dillons Corporation made credit sales of $92,400 which are subject to 4% sales tax. The corporation also made cash sales which totaled $27,768 including the 4% sales tax. Prepare the entry to record Dillons credit sales. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare the entry to record Dillons cash sales. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Brief Exercise 13-7 Lexington Corporations weekly payroll of $24,740 included FICA taxes withheld of $1,770, federal taxes withheld of $3,020, state taxes withheld of $1,120, and insurance premiums withheld of $330. Prepare the journal entry to record Lexingtons payroll. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Brief Exercise 13-8 Kasten Inc. provides paid vacations to its employees. At December 31, 2014, 28 employees have each earned 2 weeks of vacation time. The employees average salary is $412 per week. Prepare Kastens December 31, 2014, adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Brief Exercise 13-9 Mayaguez Corporation provides its officers with bonuses based on net income. For 2014, the bonuses total $376,000 and are paid on February 15, 2015. Prepare Mayaguezs December 31, 2014, adjusting entry and the February 15, 2015, entry. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 12/31/14 2/15/15 Brief Exercise 13-10 Scorcese Inc. is involved in a lawsuit at December 31, 2014. Prepare the December 31 entry assuming it is probable that Scorcese will be liable for $916,300 as a result of this suit. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2014 Prepare the December 31 entry, if any, assuming it is not probable that Scorcese will be liable for any payment as a result of this suit. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2014 Brief Exercise 13-13 Streep Factory provides a 2-year warranty with one of its products which was first sold in 2014. In that year, Streep spent $86,300 servicing warranty claims. At year-end, Streep estimates that an additional $421,300 will be spent in the future to service warranty claims related to 2014 sales. Prepare Streeps journal entry to record the $86,300 expenditure, and the December 31 adjusting entry, assuming the expenditures are inventory costs. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2014 12/31/14 Brief Exercise 13-14 Leppard Corporation sells DVD players. The corporation also offers its customers a 2-year warranty contract. During 2014, Leppard sold 20,000 warranty contracts at $121.20 each. The corporation spent $183,000 servicing warranties during 2014, and it estimates that an additional $915,000 will be spent in the future to service the warranties. Prepare Leppards journal entries for the sale of contracts. Assume the service costs are inventory costs. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare Leppards journal entries for the cost of servicing the warranties. Assume the service costs are inventory costs. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare Leppards journal entries for the recognition of warranty revenue. Assume the service costs are inventory costs. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit