Current Liabilities The following transaction occurred during 2017 i) Sold an equipment costing$ 14,000 with a two-year

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Current Liabilities The Following Transaction Occurred During 2017 I Sold An Equipment Costing 14 000 With A Two Year 1 (252.36 KiB) Viewed 59 times

Current Liabilities The following transaction occurred during 2017 i) Sold an equipment costing$ 14,000 with a two-year parts warranty to a customer on September 20, 2017, for $ 20,000 cash. The Company expects to incur warranty costs equal to 5% of dollar sales. It records warranty expense with an adjusting entry at the end of each year. Prepare the journal entry to record the adjustment on December 31, 2017, to record the warranty expense. ii) The Company borrows $ 120,000 cash on June 1, 2017, by signing a 30-day, 8% note Assume the face value of the note equals $ 120,000, the principal of the loan. Prepare the journal entry to record issuance of the note and prepare the journal entry to record payment of the note at maturity. (Use 360 days a year) iii) The staff of the company are owed salaries for the last five days of 2017. There are 12 staff members who earn $ 320 each per day. iv) The Company records a year-end entry for $ 25,000 of previously unrecorded cash sales (costing $18,000) and its sales taxes at a rate of 5%. 8.263 C. Book error v) The Company earned $ 25,000 of $ 100,000 previously received in advance and originally recorded as unearned services revenue. a Bank Balance (11562 aBook Balance vi) The Company borrows $80,000 cash on March 15, 2017, by Bighing at 30-day12% gotes (9) 1. On what date does this note mature? 2. Suppose the face yalue GT the mote equals $805000) the(215) principal of the loan. Prepare the journal note aimaturit 2) , isspepse pf the note and (b)'payment of thg nota afmaturity to ansil 23 45 e. N/R 5 000 fee Required: (25) Record journal entries and adjusting entries needed for the above transactions. 12942 12,942