Question
Listed below are a few transactions and events of Maxum Company. 1. Employees earn vacation pay at a rate of one day per month. During
Listed below are a few transactions and events of Maxum Company. |
1. | Employees earn vacation pay at a rate of one day per month. During December, 20 employees qualify for one vacation day each. Their average daily wage is $290 per employee. |
2. | During December, Maxum Company sold 3,200 units of a product that carries a 60-day warranty. December sales for this product total $138,000. The company expects 7% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $11. |
Prepare any necessary adjusting entries at December 31, 2015, for Maxum Companys year-end financial statements for each of the above separate transactions and events. |
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