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assign_sol_ch11_14_classDE

# assign_sol_ch11_14_classDE - Chapter11and14: Quick Study...

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Chapter 11 and 14: Current and Long term liabilities Tutorial Assignment solution 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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16 Cash ................................................................................ 12,600 Sales .......................................................................... 12,600 Sold razors to customers. 16 Cost of Goods Sold ......................................................... 3,360 Merchandise Inventory .............................................. 3,360 To record cost of December 16 sale (210 x \$16).
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assign_sol_ch11_14_classDE - Chapter11and14: Quick Study...

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