Carnes Electronics sells consumer electronics that carry a 90-day manufacturer’s warranty. At the time of purchase, customers are offered the opportunity to also buy a two-year extended warranty for an additional charge. During the year, Carnes received $412,000 for these extended warranties (approximately evenly throughout the year). Required: 1-a. Does this situation represent a loss contingency? 1-b. How should it be accounted for? 2. Prepare journal entries that summarize sales of the extended warranties and any aspects of the warranty that should be recorded during the year.

Answers

Answer 1

Answer: See explanation

Explanation:

a. This is not a loss contingency. A loss contingency occurs when the value of an asset is reduced because of an occurence on the future. This isn't the case here as a separate sales transaction occured.

b. To account for it, we have to defer the revenue as a liability and then we will use the straight line basis to calculate the warranty expense.

2. Dr Cash $412,000

Cr Unearned revenue - extended warranties $ 412,000

(To record the sale of extended warranty)

Dr Unearned revenue - extended warranties. $57937.50

Cr. Revenue - Extended Warranties $57937.50

(To record revenue earned on extended warranty)


Related Questions

What are the difference between aims and goal​

Answers

Answer:

Goal is a set target that a person wants to achieve, while Aim is the determined course a person sets to achieve a target.

Administrators
According to the video, what sort of education do Postsecondary Education Administrators need?
a high school diploma
O a college experience without a degree
advanced education
O an orientation

Answers

Answer:

advanced education

Explanation:

just got it right on edge 2020

Answer:

advanced education

Explanation:

hope this helps!

Jane wrote a check for $10, but was so careless and negligent that it was easy to alter. She gave this check to Ben, who changed the check to read $1,000. The alteration was pretty obvious to anyone who saw the check, but when he cashed the check at Jane’s bank, they deducted $1,000 from Jane’s account. If Jane sued the bank for the loss, would she be able to recover? If so, how much could she recover, and how would that be determined?

Answers

Answer: Yes, she will be able to recover her full loss.

Explanation:

Equipment that was purchased for $900,000 has a current book value of $450,000. Assume a capital gains tax rate of 28%. Compute the net tax payment or savings if you sell the equipment for $636,400.

Answers

Answer:

there is an increase in taxes of $52,192

Explanation:

The computation of the net payment or saving is shown below:

Given that

Book value = $450,000

Sale value = $636,400

since the sales value is more than the book value so here the capital profit is there

Therefore capital profit would be

= $636,400 - $450,000

= $186,400

Now tax would be

= $186,400 × 28%

= $52,192

So there is an increase in taxes of $52,192

The Firm X just paid a dividend of $1.26 per share on its stock. The dividends are expected to grow at a constant rate of 5% per year indefinitely. If investors require a 10% return on Firm X stock, what is the current price?

Answers

Answer: $26.46

Explanation:

The value of the stock can be solved using the Gordon growth model.

[tex]= \frac{Current dividend * (1 + growth)}{required return - growth rate} \\\\= \frac{1.26 * (1 + 0.05)}{0.10 - 0.05}\\\\= 26.46[/tex]

= $26.46

The Executive Level is the highest level of the tall hierarchy pyramid.
True or False

Answers

The answer is false

If the ending inventory of a firm is overstated by $58,000, by how much and in what direction (overstated or understated) will the firm's operating income be misstated? (Hint: Use the cost of goods sold model, enter hypothetically "correct" data, and then reflect the effects of the ending inventory error and determine the effect on cost of goods sold.) Operating income__________ by _________

Answers

Answer:

The firm's operating income will be overstated by $58,000.

Explanation:

Cost of Goods Sold Model is as below

Opening Inventory                           xxx

Add: Cost of goods manufactured xxx

Cost of goods available for sale    xxx

Less: Ending inventory                     xxx

Cost of goods sold                           xxx

It is the cost of goods sold so obtained, that is taken to the income statement. Hence, overstatement of the ending inventory will result in understatement of the cost of goods sold to the same extent. Consequently the operating profit will be overstated to the same extent.

Investing activities do not include the:

a.Purchase of plant assets.

b.Loaning of money in exchange for notes receivable.

c.Issuance of common stock.

d.Sale of plant assets.

e.Sale of short-term investments other than cash equivalents.

Answers

Answer:

c.Issuance of common stock.

Explanation:

Investing activities lead to an increase in business cash flows.  Investing involves spending money with the expectation of making higher returns.

Some investing activities include

1. Purchase or acquisition of assets to be used in the production process.

2. Sale of business assets

3. Acquisition or sale of other business

Issuing of common stocks is not considered an investment option. Common shares are issued when companies need to raise additional capital.  Issuance of common shares is a financing activity.

Select the correct answer
Which factor increases the risk of is project delays?
Options on picture

Answers

Answer:

B. Shortage of technical staff

Explanation:

It's 100% not D. I took the test and got it wrong

Both of these changes happen simultaneously in a market: the supply of good X falls and the demand for good X rises. This will result in:_______

a. an increase in both the equilibrium price and quantity in the market.
b. an increase in the equilibrium quantity and an uncertain impact on the equilibrium price
c. a decrease in both the equilibrium price and quantity in the market.
d. an increase in the equilibrium price and an uncertain impact on the equilibrium quantity.

Answers

Answer:

d.

Explanation:

This scenario will result in an increase in the equilibrium price and an uncertain impact on the equilibrium quantity. This is because when customers in a market want a product but there is very little supply exists it makes the product more valuable and thus increases the price since consumers are willing to pay more for that product to get their hands on it. Scarcity increases price always, but while the supply and demand of a product are not the same this causes an uncertain impact on the equilibrium quantity.

The rule in Garner v. Murray deals with​

Answers

Answer:

In the event of the insolvency of a partner any losses should be shared in the ratio of the last agreed capital balances before the dissolution took place. This is known as the Garner v Murray rule.

Below is a table for the present value of $1 at Compound interest.

Year 6% 10% 12%
1 0.943 0.909 0.893
2 0.890 0.826 0.797
3 0.840 0.751 0.712
4 0.792 0.683 0.636
5 0.747 0.621 0.567

Below is a table for the present value of an annuity of $1 at compound interest.

Year 6% 10% 12%
1 0.943 0.909 0.893
2 1.833 1.736 1.690
3 2.673 2.487 2.402
4 3.465 3.170 3.037
5 4.212 3.791 3.605

Using the tables provided, if an investment is made now for $23,700 that will generate a cash inflow of $7,900 a year for the next 4 years, the net present value (rounded to the nearest dollar) of the investment, assuming an earnings rate of 10%, is:________

Answers

Answer: $‭1,343‬

Explanation:

Net Present Value = Present value of Cash inflows - Present value of Cash outflows

Cash inflows are constant and so are an annuity.

Present value of Cash inflows = Annuity * Present value interest factor of annuity, 4 years, 10%

= 7,900 * 3.170

= $‭25,043‬

Net Present Value = ‭25,043‬ - 23,700

= $‭1,343‬

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Answers

Answer:

What do you want me to search the link?

Eastern Corporation has $21,000,000 in equipment that has a 15 year class life. The equipment is 8 years old. Eastern is selling the equipment for $10,000,000. Eastern uses simplified straight line depreciation (zero salvage value) and has a marginal tax rate of 34%. What is the terminal cash flow?

Answers

Answer:

$9,932,000

Explanation:

Calculation for the terminal cash flow

First step is to calculate the Sales value

Sales value =21,000,000/15 years*7years

Sales value=9,800,000

Note 15 years -8 years will gives 7 years

Second Step is to calculate the tax amount

Using this formula

Tax amount=Book Value-Sales value

Let plug in the formula

Tax amount=10,000,000-9,800,000*(34%)

Tax amount=200,000*34%

Tax amount=68,000

Last step is to calculate the terminal cash flow

Using this formula

Terminal cash flow=Book value-Tax amount

Let plug in the formula

Terminal cash flow=10,000,000-68,000

Terminal cash flow=$9,932,000

Therefore the Terminal cash flow will be $9,932,000

Johnson Company has current year accounts payable of $25,000 and cost of goods sold of $100,000. Compute Johnson Company’s days’ payable outstanding.

Answers

Answer:

the days payable outstanding is 91.25 days

Explanation:

The computation of the days payable outstanding is  shown below:

Days' payable outstanding is

= (Accounts Payable ÷  Cost of goods sold) × total number of days in a year

= ($25,000 ÷ $100,00) × 365 days

= 91.25 days

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Hence, the days payable outstanding is 91.25 days

Which source of funding would be most appropriate if you were starting a
business from your home and you only needed to buy a computer and pay for
Internet service to get started?
A. Selling property
B. Applying for a bank loan
C. Using a credit card
D. Seeking venture capital

Answers

Answer:

a credit card would be better ..cause it has a convenient pay method

The source of funding that would be most appropriate if we were starting a business is using a credit card. The correct option is c.

What is a credit card?

A credit card is a payment card issued to users to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt that is to promise to the card issuer to pay them for the amounts plus the other agreed charges.

The card issuer is generally a bank or credit union, creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance. There are two credit card groups: consumer credit cards and business credit cards.

Most cards are plastic, but some are metal cards, stainless steel, gold, palladium, titanium, and a few gemstone-encrusted metal cards.

Learn more about credit, here:

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Crane Company issues $255,000, 20-year, 6% bonds at 103. Prepare the journal entry to record the sale of these bonds on June 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answers

Answer:

June 1, 2022

Cash                                                 262650 Dr

    Bonds Payable                                   255000 Cr

    Premium on bonds payable              7650 Cr

Explanation:

As the bonds with a face value of $255000 are issued at 103%, this means that they are being issued at a premium of 3 percent. The premium on bonds payable will be,

Premium on bonds payable = 255000 * 0.03 = 7650

We will debit the cash received from issuing the bonds that is face value of the bond plus premium. The cash receipt will be = 255000 + 7650 = 262650

The journal entry will be to be to debit cash and credit bonds payable and premium on bonds payable

Compare the opportunities and threats that small businesses face. Which opportunities are most compelling

Answers

Answer:

Explanation:

The main opportunity that small businesses face (and the most compelling one) is the chance to be successful, make lots of profit and grow exponentially. If a small business has a great product, marketing, and strategy they can begin to become immensely profitable which leads to exponential growth. On the other hand, small businesses usually face competition as their biggest threat. When entering a new market there are bound to be a large number of competitors that can outprice your products and ultimately run you out of business if the small business does not have a proper strategy in place.

When the economy is in a recession, the government will want to increase output. If the multiplier equals 2.7 and the government increases spending by 145, how much will output increase by?

Answers

Answer:

the increase in the output is 391.50

Explanation:

The computation of the increase in the output is shown below:

Given that

The Multiplier is 2.7

And, there is an increase in government spending by 145

So, the output would increased by

= Multiplier × increase in government spending

= 2.7 × 145

= 391.50

Hence, the  increase in the output is 391.50

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Career research and decision making
1. Define your problem related to college or career goals.

Answers

Answer: The difficulty of choosing the right career

Explanation: One of the major problems I experienced was choosing the right career for me. When you are young and just got out of high school right away you think about college but, what career is the right one? that was not just my problem but a lot of young adults and teenagers deal with this.

The thing is people feel pressure in going to college and sometimes make bad decisions when choosing a career, thats why is important to take some time before deciding which career studying.

Information on Kimble Company's direct labor costs for the month of January is as follows:________. Actual direct labor hours 34,800 Standard direct labor hours 35,600 Total direct labor payroll $ 269,700 Direct labor efficiency variance-favorable $ 5,600 What is Kimble's direct labor rate variance?

Answers

Answer:

Direct labor rate variance= $26,100 unfavorable

Explanation:

To calculate the direct labor rate variance, we need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Actual rate= 269,700/34,800= $7.75

First, we need to calculate the standard rate:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

5,600 = (35,600 - 34,800)*standard rate

5,600/800= standard rate

$7= standard rate

Now, the direct labor rate variance:

Direct labor rate variance= (7 - 7.75)*34,800

Direct labor rate variance= $26,100 unfavorable

Dartmouth Assessment Centre screens and trains employees for a computer assembly firm in Halifax. The progress of all trainees is tracked and those not showing the proper progress are moved to less demanding programs. By the tenth repetition, trainees must be able to complete the assembly task in 1 hour or less. Torri Olson-Alves has just spent 5 hours on the fourth unit and 4 hours completing her eighth unit, while another trainee, Julie Burgmeier, took 4 hours on the third and 3 hours on the sixth unit. Should you encourage either or both of the trainees to continue? Why?

Answers

Answer:

Discourage Torri from continuing. Encourage Julie to continue.

Explanation:

The progress of all trainees is tracked. Those not showing good progress are moved to less demanding programs. This means that there is hope of still doing/getting a job, if they don't pass this test.

REQUIREMENT: By the 10th time doing the test, trainees must be able to complete the task in a maximum of 1 hour.

1st Trainee: Torri Olson-Alves

5 hours on Unit 4;   4 hours on Unit 8

Should Torri be encouraged to continue? NO.

There are 10 units or repetitions in all. If Torri spends 5 hours on Unit 4 and spends 4 hours on Unit 8, then Torri is slow or isn't making much progress. After 4 repetitions, her marginal product only increased by an hour. She most likely won't make it to 1 hour by the 10th repetition.

2nd Trainee: Julie Burgmeier

4 hours on Unit 3;   3 hours on Unit 6

Should Julie be encouraged to continue? YES.

Julie makes a progress of 1 hour after 3 repetitions. We can predict that after another 3 repetitions (on Unit 9) progress would be made again and by Unit 10, she would have met the required benchmark.

What kind of ideas are not patentable according to the U.S. Patent Office?

Answers

1. A discovery, scientific theory or mathematical method.

2. An aesthetic creation.

3. A scheme, rule or method for performing a mental act, playing a game or doing business, or a computer program.

4. A presentation of information.

5. A procedure for surgical or therapeutic treatment, or diagnosis, to be practised on humans or animals.

Answer:

A presentation of information

Explanation:

Which of the following is an advantage to purchasing a commercial property compared to a residential property?A. Business tenants are generally easier to deal with than apartment house tenants.B. The vacancy rate is higher than residential properties.C. Only residential property owners have to pay property taxes.D. These properties do not qualify for homestead exemptions.Seller Blake's home just hosted a caravan for his agent's brokerage. What should he or his agent do to get feedback from the other licensees?A. Nothing, it is illegal to ask for their opinions.B. Text each agent after the home tour.C. Ask them to give their opinions orally while still looking at the property.D. Ask each agent to fill out an evaluation.Title records protect the public by giving all concerned parties ________ of the condition of a property's legal titleA. marketable dataB. destructive warningC. removable noticeD. constructive notice

Answers

Answer: A. Business tenants are generally easier to deal with than apartment house tenants.

D. Ask each agent to fill out an evaluation.

Explanation:

Property tax is a tax that is paid by an individual to the government for having a property such a a real estate. An advantage to purchasing a commercial property compared to a residential property is that business tenants are generally easier to deal with than apartment house tenants. Typically, apartment house tenants are tougher to deal with because there are a lot of challenges or misunderstanding that one will encounter with them.

For Blake or his agent to get a feedback from the other licensees, he should ask them to fill out an evaluation. This will be vital to know how they feel and other necessary issues can also be addressed using the evaluation.

A certain company has net income of $114.9 million, sales of $698.4 million, total assets of $730.2 million, a debt-to-equity ratio of 0.48, and current assets of $101 million. What is their return on equity (ROE)

Answers

Answer:

30.26%

Explanation:

Return on equity measures how profitable a business is, when compared to it's equity.

Return on equity is computed as;

= Net income / Shareholder's equity

Where,

Shareholder's equity = Company's assets - Debts

= $114,900,000 / ($730,200,000 - $350,496,000)

= $114,900,000 / $379,704,000

= 30.26%

Question 2 of 10
Which action is a bank most likely to take when evaluating a loan application
from a person with a low credit score and a poor credit history?
A. Reducing the interest rate to encourage the person to borrow
more
B. Increasing the value of the loan to earn more interest over time
O C. Denying the loan because the person is unlikely to pay it back
O D. Requiring the person to take more than one loan at a time
SUBMIT
PREVIOUS

Answers

Answer:

C is the correct answer

Explanation:

Denying the loan because the person is unlikely to pay it back is a bank most likely to take when evaluating a loan application from a person with a low credit score and a poor credit history.

What is loan application?

Borrowers apply for loans via a loan application. Through the loan application, borrowers provide vital financial information to the lender.

The loan application is crucial in determining whether or not the lender will approve your funding or credit request.

Thus, option C is correct.

For more details about loan application, click here

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You own a portfolio that has $2,100 invested in Stock A and $3,200 invested in Stock B. If the expected returns on these stocks are 13 percent and 17 percent, respectively, what is the expected return on the portfolio?

Answers

Stock A: $2,100, 13%
Stock B: $3,200 17%

Stock A-> 2100 x .13 = 273
Stock B -> 3200 x .17 = 544

Add
273 + 544 = 817

Expected return is $817

A proposed capital budgeting project has initial cash outflows, followed by cash inflows, which are then followed by more cash outflows. We call these types of cash flows: Group of answer choices non-normal cash flows. normal cash flows. None of these are correct. reflective cash flows. mutually-exclusive cash flows.

Answers

Answer:

a. Non-normal cash flow

Explanation:

Non-normal cash flows are also called as unconventional cash flows and it consist of cash-flow patterns that changes direction more than once.  

Mary Cooper just purchased 120 shares in the All-American Fidelity Fund. The purchase cost for each share was $30. If this fund charges a 4 percent load, what is the total amount of commission she will pay the investment company?

Answers

Answer: $144

Explanation:

First calculate how much she spent to buy the shares;

= 120 * 30

= $3,600

The fund charges a 4% load so the total compensation paid is;

= 3,600 * 4%

= $144

Assume the company is considering investing in a new machine that will increase its fixed costs by $42,500 per year and decrease its variable costs by $10 per unit. Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases this machine.

Answers

Answer:

The company should purchase the machine.

Explanation:

Note: The complete question is attached below

Forecasted contribution margin income statement

For the Year Ended December 31

Particulars                                       Amount$

Sales                                                2,440,000

Variable cost(10,000*185(195-10))  1,850,000

Contribution margin                        590,000

Fixed cost (327,600+42,500)         370,100

Income                                              $219,900

Because the income increase by $57,500 due to the pruchase, the company should purchase the machine

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