chap8 4

The accounting records of Mack's Appliances included the following balances at the end of the period In the past, Mack's warranty expense has been \7 of sales. During the current period, the business paid \\( \\$ 7,000 \\) to satisfy the warranty claims Read the requirements \\( { }^{6} \\) Requirement 1. Journalize Mack's warranty expense for the period and the company's cash payments to satisfy warranty claims. Explanations are not required Start by journalizing the warranty expense. (Record debits first, then credits. Exclude explanations from journal entries) Now journalize the warranty payments Requirement 2. Show what Mack's will report on its income statement and balance sheet for this situation at the end of the period: (If an input field is not used in the statement, leave the field empty, do not select a label or enter a zero.) Begin by showing what the company would report on its income statement at the end of the period Now show what the company would report on its balance sheet at the end of the period Requirement 3. Which data item from requirement 2 will affect the current ratio? Will Mack's current ratio increase or decrease due to this item? Which data item from Requirement 2 will affect Mack's current ratio? (16) Will Mack's current ratio increase or decrease as a result of an increase in this item? \\( (17) \\) 6: Requirements 1. Journalize Mack's warranty expense for the penod and the company's cash payments to satisfy warranty claims Explanations are not required 2. Show what Mack's will report on its income statement and balance sheet for this situation at the end of the period 3. Which data item from requirement 2 will affect the current ratio? Will Mack's current ratio increase or decrease due to this item? The accounting records of Mack's Appliances included the following balances at the end of the period In the past, Mack's warranty expense has been \7 of sales. During the current period, the business paid \\( \\$ 7,000 \\) to satisfy the warranty claims Read the requirements \\( { }^{6} \\) Requirement 1. Journalize Mack's warranty expense for the period and the company's cash payments to satisfy warranty claims. Explanations are not required Start by journalizing the warranty expense. (Record debits first, then credits. Exclude explanations from journal entries) Now journalize the warranty payments Requirement 2. Show what Mack's will report on its income statement and balance sheet for this situation at the end of the period: (If an input field is not used in the statement, leave the field empty, do not select a label or enter a zero.) Begin by showing what the company would report on its income statement at the end of the period Now show what the company would report on its balance sheet at the end of the period Requirement 3. Which data item from requirement 2 will affect the current ratio? Will Mack's current ratio increase or decrease due to this item? Which data item from Requirement 2 will affect Mack's current ratio? (16) Will Mack's current ratio increase or decrease as a result of an increase in this item? \\( (17) \\) 6: Requirements 1. Journalize Mack's warranty expense for the penod and the company's cash payments to satisfy warranty claims Explanations are not required 2. Show what Mack's will report on its income statement and balance sheet for this situation at the end of the period 3. Which data item from requirement 2 will affect the current ratio? Will Mack's current ratio increase or decrease due to this item