1. Taylor, Inc, sells iPhones and offers a 2-year warranty program whereby if the iphone is broken it will replace the phone for free. Taylor had the following information for 2025: 2. iPhone sales $1,000,000 in 2025 and $2,000,000 in 2026. 3. The cost of replacing phones in 2025 was $120,000. 4. The cost of replacing phones in 2026 was $300,000. A. Prepare the journal entries for the warranty activity in 2025, excluding any year-end adjusting entries. B. Prepare the journal entries for the warranty activity in 2026, excluding any year-end adjusting entries.
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- Happy Trails guarantees its snowmobiles for three years. Company experience indicates that warranty costs will be approximately 5% of sales. Assume that the Happy Trails dealer in Colorado Springs made sales totaling $700,000 during 2024. The company received cash for 40% of the sales and notes receivable for the remainder. Warranty payments totaled $15,000 during 2024. Read the requirements. Requirement 1. Record the sales, warranty expense, and warranty payments for the company. Ignore cost of goods sold. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin with the entry to record the sales. (Prepare a single compound entry for this transaction.) Date Accounts and Explanation 2024 Debit G Credit Requirements 1. 2. Assume the Estimated Warranty Payable is $0 on January 1, 2024. Post the 2024 transactions to the Estimated Warranty Payable T-account. At the end of 2024, how much in Estimated Warranty Payable does the company…In 2023, Ayayai Corp. began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows: First year of warranty 2% Second year of warranty 5% Sales and actual warranty expenditures for 2023 and 2024 are presented below: 2023 2024 Sales Actual warranty expenditures O $74900 O $12020 $469000 $601000 O $51000 O $23900 17000 Ayayai uses the expense approach to account for warranties. What is the estimated warranty liability at the end of 2024? 34000Use the information for the next four (4) questions. In 2020, Pluto Company started selling new computer that carried a 2-year warranty against defects. Based on the manufacturer's recommendations, the entity estimated warranty cost as a percentage of sales. The sales and warranty repairs are made evenly during the year. First year of warranty 3% Second year of warranty 9% Sales and actual warranty repairs are as follows: 2020 2021 Sales 7,500,000 10,500,000 Actual warranty repairs 150,000 375,000 What is the warranty expense for 2020? What is the warranty expense for 2021? What is the warranty liability on December 31, 2021 before adjustment? What is the warranty liability on December 31, 2021 after adjustment?
- In 2020, Dare Company began selling a new calculator that carried a two-year warranty against defects. The entity projected the estimated warranty cost as a percent of sales. First year of warranty 4% Second year of warranty 10% Sales and actual warranty repairs were: 2020 2021 Sales 5,000,000 9,000,000 Actual warranty repairs 200,000 560,000 Required: 1. Analyze the estimated warranty liability on December 31, 2022 to ascertain if adjustment is necessary. The sales and warranty repairs are made evenly during the year. 2.Prepare the adjustment to correct the estimated warranty liability on December 31,2022Jem Riane Delos Reyes Bank granted a loan of P3,000,000 to a borrower on January 1, 2021. The terms of the loan were payment in full on December 31, 2026 plus annual interest payment at 8% every December 31. The first interest payment was made on December 31, 2021. However, on December 31, 2021, due to financial difficulties, the borrower informed Freetown Bank that it would probably miss the interest payments for the next two years. After that, the borrower expects to resume the annual interest payment but the principal would be paid on December 31, 2027 or one year late with interest paid for that additional year. Accordingly, the payments from the borrower are scheduled as follows: Date of Flow Cash Flow Amount 12/31/2022 No interest payment Nil 12/31/2023 No interest payment Nil 12/31/2024 Interest payment 12/31/2025 Interest payment 12/31/2026 Interest payment 12/31/2027 Interest payment P 240,000 240,000 240,000 240,000 3,000,000 Principal payment 34. The carrying amount of the…In 2020, Dare Company began selling a new calculator that carried a two-year warranty against defects. The entity projected the estimated warranty cost as a percent of sales. First year of warranty 4% Second year of warranty 10% Sales and actual warranty repairs were: 2020 2021 Sales 5,000,000 9,000,000 Actual warranty repairs 200,000 560,000 Required: 1. Prepare journal entries in connection with the warranty using the "expense as incurred" approach. 2. Prepare journal entries in connection with the warranty using the "accrual" approach. 3. Determine the estimated warranty liability on December 31, 2021.
- Could you help me solve this accounting homework problem for me? and please show all your work so I can understand it On January 1, 2020, TPM Inc. acquires a piece of equipment for a list price of $300,000. It pays$20,000 immediately and writes a note for the remainder. Annual interest of 3% is due everyDecember 31st, and the principal of the note is payable in 6 years.TPM’s incremental borrowing rate is 6%, while the seller’s incremental borrowing rate is 7%.TPM is a public company. It depreciates its equipment using the diminishing balance method at15%. The equipment’s residual value is $40,000 at the end of its useful life. 1) Prepare all required journal entries for the years 2020 and 2021.2) Determine the Asset’s net book value on January 1, 2024.3) Determine the note payable carrying value on January 1, 2024.7) On December 1, 2022, Olympia Hot Yoga issued a note payable to Columbia Bank for $45,000 with an annual interest rate of 6% and a term of six months (due May 31, 2023). What is the amount of interest expense recognized by Olympia Hot Yoga in 2022? What is the amount of interest expense recognized by Olympia Hot Yoga in 2023? What is the total amount Olympia Hot Yoga will pay to Columbia Bank on the maturity date?Current Attempt in Progress In 2023, Cheyenne Corp. began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows: First year of warranty 3% Second year of warranty 6% Sales and actual warranty expenditures for 2023 and 2024 are presented below: 2023 2024 Sales Actual warranty expenditures $467000 $610000 $96930 $48930 $18300 O $48000 16000 32000 Cheyenne uses the expense approach to account for warranties. What is the estimated warranty liability at the end of 2024?
- On January 1, 2024, Tropical Paradise borrows $39,000 by agreeing to a 6%, four-year note with the bank. The funds will be used to purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $915.92 are due at the end of each month, with the first installment due on January 31, 2024. Required: Record the issuance of the installment note payable and the first two monthly payments. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet Record the issuance of a note payable. Note: Enter debits before credits. Date January 01, 2024 Cash General Journal Notes Payable Debit 50,000.00 Credit 50,000.00A business owner takes out a loan on July 1, 2022 for $20,000 to do a renovation. The bank charges 8.2% interest compounded semi-annually. The business owner wants to re-pay the loan starting on July 1, 2024 in semi-annual installments of $1,200. a) How many payments are needed to repay the loan in full? b) If the last payment is increased so that there is no final payment less than $1,200, what must that final payment be?Q3. You obtained a partially amortizing CRE loan for 12,000,000 at 4.5% on August 1, 2015. It is amortized on a 25 year schedule, with a balloon payment due after 7 years. There is no prepayment penalty during the 7th year. You have a contract to sell the building and expect to close on March 22, 2022. What will your monthly payments be? What will your balance be on March 1, 2022? (A9A) aximum the What is your daily interest amount during March 2022? (Note: Assume the bankers year of 360 days, which means all months are considered to be 30 day months). What will your loan payoff be on March 22, 2022? Name (printed): Signature: