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can someone please help me with this. I need to know how they calculated these. 1. A firm sold $100,000 worth of goods during 2009.
can someone please help me with this. I need to know how they calculated these. 1. A firm sold $100,000 worth of goods during 2009. The fim extends warranty coverage on these goods. Historically, warranty costs have averaged 3% of total sales. During 2009, the firm incurred $1,000 to service goods sold in 2008 and 500 to service goods sold in 2009. The 2009 beginning balance of the warranty liability is $2.500. What is the warranty expense for 2009? A S2000 B. $2,500 C. S500 D. $1,500 2. Based on the information in question 2, what is the ending balance of warranty liability at the end of 2009? A. $2,500 B. $5.500 C. 54.000 D. $2,000 3. ER issued $ 2,000,000, 9%, long-term bond payable for $1,900,000 cash on January 1, 2019 The bond matures in many years. Interest is payable semi-annually on January 1 and July 1 What is the carrying value of the bonds on the date of issuance? A $2,180.000 B. $2,000,000 C. S1.900.000 D. Cannot answer; the bond term and market interest rate are not given 4. Additional features about the bond issued in question 3 is as the following. The bonds can be called by the issuer at $98 on any interest payment date after December 31, 2023. The unamortized bond discount was $28,000 on December 31, 2021, and the market price of the bonds was $94 on this date. On its December 31, 2021, balance sheet, at what amount should ER report the carrying value of the bonds! A $1,960,000 B. $2,028,000 C. $1.972.000 D. $1.880,000 E. Cannot be determined. 5. $5,000 (face value) of bonds with a book value of $4,300 was retired 4 years and 9 months prior to maturity. The dollar amount (excluding interest) paid to retire the bonds was $4.700. The entry to record the retirement would include: A. dr. bonds payable $5,000 B. dr. cash $4,700 C. cr gain on bond retirement S400 D.cr. bond payable $5,000
can someone please help me with this. I need to know how they calculated these.
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