Business, 03.04.2020 02:16 kiro7ix

On January 2, 2020, Pearl Company sells production equipment to Fargo Inc. for $52,000. Pearl includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Pearl incurs costs related to warranties of $940. At December 31, 2020, Pearl estimates that $660 of warranty costs will be incurred in the second year of the warranty. a. Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020 (assuming financial statements are prepared on December 31, 2020).b. Repeat the requirements for (a), assuming that in addition to the assurance warranty, Grando sold an extended warranty (service-type warranty) for an additional 2 years (2019–2020) for $800.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 00:50

Cool beans is a locally owned coffee shop that competes with two large coffee chains, planeteuro and frothies. alicia, the owner, hired two students to count the number of customers that entered each of the coffee shops to estimate what percent of people who are interested in coffee are visiting each shop. after a week, the students found the following results: 589 visited cool beans, 839 visited planeteuro, and 1,290 visited frothies. the students were surprised that cool beans had 139 visits on monday which represented 59% of all people who visited one of the three coffee shops on mondays. how many people visited one of the three coffee shops during the week?

Answers: 2

Answer

Business, 22.06.2019 11:00

On analyzing her company’s goods transport route, simone found that they could reduce transport costs by a quarter if they merged different transport routes. what role (job) does simone play at her company? simone is at her company.

Answers: 1

Answer

Business, 22.06.2019 16:00

Arnold rossiter is a 40-year-old employee of the barrington company who will retire at age 60 and expects to live to age 75. the firm has promised a retirement income of $20,000 at the end of each year following retirement until death. the firm's pension fund is expected to earn 7 percent annually on its assets and the firm uses 7% to discount pension benefits. what is barrington's annual pension contribution to the nearest dollar for mr. rossiter? (assume certainty and end-of-year cash flows.)

Answers: 2

Answer

Business, 22.06.2019 21:40

The farmer's market just paid an annual dividend of $5 on its stock. the growth rate in dividends is expected to be a constant 5 percent per year indefinitely. investors require a 13 percent return on the stock for the first 3 years, a 9 percent return for the next 3 years, a 7 percent return thereafter. what is the current price per share? select one: a. $212.40 b. $220.54 c. $223.09 d. $226.84 e. $227.50 previous pagenext page

Answers: 2

Answer

You know the right answer?

On January 2, 2020, Pearl Company sells production equipment to Fargo Inc. for $52,000. Pearl includ...

Questions