answer_keys_week11

answer_keys_week11 - Quick Study 11-4 (15 minutes) 1....

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Unformatted text preview: Quick Study 11-4 (15 minutes) 1. Computation of interest payable at December 31, 2009: Days from November 7 to December 31.............................................. 54 days Accrued interest (8% x $80,000 x 54/360)........................................... $960 2. 2009 Dec.31 Interest Expense.......................................................................... 960 Interest Payable................................................................... 960 To record accrued interest (8% x $80,000 x 54/360). 3. 2010 Feb. 5 Interest Expense*........................................................................ 640 Interest Payable.......................................................................... 960 Notes Payable.............................................................................. 80,000 Cash...................................................................................... 81,600 To record payment of note plus interest *(8% x $80,000 x 36/360). Problem 11-2A (40 minutes) 1. 2008 Nov. 11 Cash................................................................................................ 4,500 Sales........................................................................................... 4,500 Sold razors to customers. 11 Cost of Goods Sold......................................................................... 1,200 Merchandise Inventory............................................................ 1,200 To record cost of November 11 sale (75 x $16). 30 Warranty Expense......................................................................... 315 Estimated Warranty Liability................................................. 315 To record razor warranty expense and liability at 7% of selling price. Dec. 9 Estimated Warranty Liability....................................................... 240 Merchandise Inventory............................................................ 240 To record cost of razor warranty replacements (15 x $16)....
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answer_keys_week11 - Quick Study 11-4 (15 minutes) 1....

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