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The following information is available for a retail store for the month of february: Wahlberg Computers sells computers for $2,500 each on account. On february
The following information is available for a retail store for the month of february: Wahlberg Computers sells computers for $2,500 each on account. On february 1, wahlberg sold 20 computers. The cost of each computer sold was $1,000. The store uses the perpetual inventory system. It is estimated that the warranty expense is 5% of gross sales. A journal entry is prepared on february 1 During February Wahlberg replaced two computers due to product warranty complaints for products purchased in a prior month. A customer fell in the store and is seeking $100,000 in damages. Wahlberg's attorney believes the case is frivolous because the customer has similar lawsuits pending against other retail stores. A customer is suiting wahlberg computers for $100,000 because the customer's purchased from wahlberg Computers started on fire and destroyed the customer's residence. Wanlberg's attorney believes the customer will probably win the case and receive $100,000. Required: Prepare the journal entries to record the transactions above. Omit explanations. Darla's Cookie Emporium borrowed money by issuing $200,000 of bonds at 96 on January 1, 2014. The bonds pay interest on January 1 and July 1. The slated rate of interest is 5% and the bonds mature in 10 years. Any discount or premium is amortized using the straight-line method. Prepare journal entries on the following dates: January 1, 2014 July l,2014 December 31, 2014, the fiscal year end January 1, 2015 January 1, 2024 Omit explanations
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