Chapter 9 - Jordan Kirkey ACC 212 20 Chapter 9 9-1 1 C 6 C...

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Unformatted text preview: Jordan Kirkey ACC 212 20 Chapter 9 9-1 1 C 6 C 2 L 7 N 3 C 8 C 4 C 9 C 5 L 10 C 9-2 1. Warranty Expense 5,440 Estimated Warranty Liability 5,440 2. No adjusting entry can be made since the loss cannot be reasonably estimated. Disclosure of the suit as a contingent liability should be made in the notes to the financial statements. 3. Vacation Benefits Expense 3,000 Vacation Benefits Payable 3,000 4. No adjusting entry is required because the supplier will probably no default on the debt. 5. Cash 787,500 Sales 750,000 Sales Taxes Payable 37,500 Cost of Goods Sold 500,000 Merchandise Inventory 500,000 6. Unearned Services Revenue 75,000 Earned Services Revenue 75,000 9-3 1. B = 0.03 ($500,000 B) B = $15,000 0.03B 1.03B = $15,000 B = $14,563 (rounded to nearest dollar) 2. 2008 Dec. 31 Employee Bonus Expense 14,563 Bonus Payable 14,563 3. 2009 Jan. 19 Bonus Payable 14,563 Cash 14,563 9-5 1. Maturity Date is January 30, 2009 2. Interest Expense = Principal x Interest Rate x Fraction of Year Interest Expense = $200,000 x 9% x (60/360) = $ 3000 3. Interest Expense = Principal x Interest Rate x Fraction of Year Interest Expense = $200,000 x 9% x (30/360) = $ 1500 4. a. 2008 Nov. 1 CashNov....
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This note was uploaded on 04/03/2008 for the course ACC 212 taught by Professor Stovall during the Spring '08 term at Grand Valley State University.

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Chapter 9 - Jordan Kirkey ACC 212 20 Chapter 9 9-1 1 C 6 C...

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