Exercise 11 12 Accounting for estimated liabilities LO P4 Listed below are a few transactions and events of Maxum Company Employees earn vacation pay at a rate of one day per month During December, 39 employees qualify for one vacation day each Their average daily wage is $280 per employee During December, Maxum Company sold 4,900 units of a product that carries a 60 day warranty December sales for this product total $121,000 The company expects 5 of the units to need warranty repairs, and it estimates the average repair cost per unit will be $19 Prepare any necessary adjusting entries at December 31, 2017, for Maxum Companys year end financial statements for each of the above separate transactions and events Journal entry worksheet Employees earn vacation pay at a rate of one day per month During December, 39 employees qualify for one vacation day each Their average daily wage is $280 per employee Record the related adjusting entry Note Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet

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Exercise 11-12 Accounting for estimated liabilities LO P4 Listed below are a few transactions and events of Maxum Company. Employees earn vacation pay at a

Exercise 11-12 Accounting for estimated liabilities LO P4

Listed below are a few transactions and events of Maxum Company.

Employees earn vacation pay at a rate of one day per month. During December, 39 employees qualify for one vacation day each. Their average daily wage is $280 per employee.
During December, Maxum Company sold 4,900 units of a product that carries a 60-day warranty. December sales for this product total $121,000. The company expects 5% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $19.

Prepare any necessary adjusting entries at December 31, 2017, for Maxum Companys year-end financial statements for each of the above separate transactions and events.

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Journal entry worksheet Employees earn vacation pay at a rate of one day per month. During December, 39 employees qualify for one vacation day each. Their average daily wage is $280 per employee. Record the related adjusting entry. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet