Picture 4 & 5 go together!
Broward Company estimated that its warranty expense would be $6,360 for the current year. During the year Broward paid $3,730 to repair merchandise that was returned by customers. Required: a. What is the amount of warranty expense for the current year? b. If this is the first year of operations, what is the amount of warranty liability that will be shown on the balance sheet at the end of the year? At the beginning of Year 1, McKee, Incorporated had a balance in the Warranty Payable account of $18,000. During the year McKee sold for $694,000 several products that carrisd a two-year warranty. Mckee estimated that warranty expense would be 3% of sales for the year: Required: If McKee's paid warranty claims in the amount of $11,600 during Year 1 , what is the balance in the Warranties. Payable account after the Warranty obligation is recognized? Required: a-1. Prepare an income statement for Deloch's first year of operation. a-2. Prepare a statement of cash ffows for Deloch's first year of operation. Complete this question by entering your answers in the tabs below. Prepare a statement of cash flows for Deloch's first year of operation. Note: Cash outflows should be indicated with a minus sign. Abardeen Corporation borrowed $72,000 from the bank on October 1, Year 1. The note had an 6 percent annual rate of interest and matured on March 31 , Year 2 interest and principat were paid in cash on the maturity date. Required: 8. What amount of cash did Abardeen pay for interest in Year 1? b. What amount of interest expense was recognized on the Year 1 income statement? Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. c. What amount of total liabilities was reported on the December 31 , Year 1, balance sheet? Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. d. What totat amount of cash was paid to the bank on March 31, Year 2, for principat and interest? e. What amount of interest expense was reported on the Year 2 income statement? Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. To support herself while attending school, Daun Deloch sold stereo systems to other students. During the first year of operations. Deloch purchased the stereo systems for $152,000 and sold them for $284.000 cash. She provided her customers with a one-year warranty against defects in parts and labor. Based on industry standards, she estimated that warranty claims would amount to 5 percent of sales. During the year, she paid $1,820 cash to replace a defective tuner. Required: e-1. Prepare an income statement for Deloch's first year of operation. a-2. Prepare a statement of cash fiows for Deloch's first year of operation. Complete this question by entering your answers in the tabs below. Prepare an income statement for Deloch's first year of operation
