YZA Inc., a software development company, reports its balance sheet as of December 31, 2023. The company's
Question:
YZA Inc., a software development company, reports its balance sheet as of December 31, 2023. The company's assets include cash, accounts receivable, software licenses, and intellectual property. Liabilities consist of accounts payable, accrued expenses, and long-term debt. Shareholders' equity comprises common stock and retained earnings. YZA Inc.'s balance sheet reflects its recent acquisition of a competitor's software product. Requirements: a. Calculate the total assets of YZA Inc. b. Determine the total liabilities. c. Analyze the impact of software product acquisition on shareholders' equity.
ABC Corporation sold merchandise for $10,000 cash, which cost $6,000. The merchandise had a warranty, and ABC Corporation estimates warranty expenses at 5% of sales. Requirements: a. Prepare the journal entry to record the sale of merchandise by ABC Corporation. b. Record the cost of goods sold. c. Estimate the warranty expense. d. Determine the total gross profit for the sale. e. Analyze the impact of the warranty expense on the income statement and balance sheet.
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen