Chapter 11_14_suppDE

Chapter 11_14_suppDE - Chapter 11 and 14 Ex 11-8 1....

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Chapter 11 and 14 Ex 11-8 1. Warranty Expense = 3% of dollar sales = 3% x $9,400 = $282 2. The December 31, 2009, balance of the liability equals the expense because no repairs are provided in 2009. Therefore, the ending balance of the Estimated Warranty Liability account is $282 . 3. The company should report no additional warranty expense in 2010 for this copier. 4. The December 31, 2010, balance of the Estimated Warranty Liability account equals the 2010 beginning balance minus the costs incurred in 2010 to repair the copier: Ending 2009 balance. ........................................................................ $ 282 Less parts cost. ................................................................................. (125 ) Ending balance 2010 ......................................................................... $ 157 5. Journal entries 2009 (a) Aug. 16 Cash. ..................................................................................... 9,400 Sales. .............................................................................. 9,400 To record cash sale of copier. Aug.
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This note was uploaded on 06/09/2011 for the course ECON econ 1001 taught by Professor Wong during the Fall '09 term at HKU.

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Chapter 11_14_suppDE - Chapter 11 and 14 Ex 11-8 1....

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