Exercise 9-10 (25 minutes)
1. Warranty Expense = 4% of dollar sales = 4% x $6,000 = $240
2. The December 31, 2015, balance of the liability equals the expense
because no repairs are provided in 2015. Therefore, the ending balance
of the Estimated Warranty
Exercise 8-2 (15 minutes)
Cost of land
Purchase price for land.
Purchase price for old building.
Demolition costs for old building.
Costs to fill and level lot.
Total cost of land.
Cost of new building and land im
Exercise 5-1 (10 minutes)
The title will pass at destination which is Harlow Companys
receiving dock. Harris should show the $12,500 in its inventory at yearend as Harris retains title until the goods reach Harlow Company.
The consignor is Harris Co
Exercise 3-1 (15 minutes)
a. Adjusting entry:
To record accrued wages for one day.
(5 workers x $250)
b. Payday entry:
To record accrued and
Exercise 2-4 (15 minutes)
License Fee Revenue.
Exercise 1-1 (10 minutes)
Analyzing and interpreting reports
Presenting financial information
Keeping a log of service costs
Measuring the costs of a product
Preparing financial statements
Seeing revenues generated
Exercise 11-1 (15 minutes)
1. Owner authority and control.One vote per share
2. Ease of formation.Requires government approval
3. Transferability of ownership.Readily transferred
4. Ability to raise large amounts of capital. ig