Order Now

Question : 91. Firms account for leases using either the operating lease method : 1245814

Accounting

 

 

91. Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is true? A. The operating lease method treats leases as executory contracts. B. The operating lease method recognizes a leased asset on the lessee’s statement of cash flows.C. The operating lease method recognizes a lease liability on the lessee’s balance sheet. D. Under the operating lease method, the lessor does not recognize rent revenue as the lessee uses the leased asset over time.E. Under the operating lease method, the lessee does not recognize rent expense as the lessee uses the leased asset over time.

 

92. Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is not true? A. The operating lease method treats leases as executory contracts. B. The operating lease method does not recognize a leased asset on the lessee’s balance sheet. C. The operating lease method does not recognize a lease liability on the lessor’s balance sheet. D. Under the operating lease method, the lessor recognizes rent revenue as the lessee uses the leased asset over time.E. Under the operating lease method, the lessee does not recognize rent expense as the lessee uses the leased asset over time.

 

93. Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is not true? A. The operating lease method treats leases as executory contracts. B. The operating lease method does not recognize a leased asset on the lessee’s balance sheet. C. The operating lease method does not recognize a lease liability on the lessee’s balance sheet. D. Under the operating lease method, the lessor does not recognize rent revenue as the lessee uses the leased asset over time.E. Under the operating lease method, the lessee recognizes rent expense as the lessee uses the leased asset over time.

 

94. Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is not true? A. The operating lease method treats leases as executory contracts. B. The operating lease method does not recognize a leased asset on the lessee’s balance sheet. C. The operating lease method recognizes a lease liability on the lessee’s balance sheet. D. The lessor recognizes rent revenue as the lessee uses the leased asset over timeE. The lessee recognizes rent expense as the lessee uses the leased asset over time.

 

95. Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is not true? A. The operating lease method treats leases as executory contracts. B. The operating lease method recognizes a leased asset on the lessee’s balance sheet. C. The operating lease method does not recognize a lease liability on the lessee’s balance sheet. D. The lessor recognizes rent revenue as the lessee uses the leased asset over time.E. The lessee recognizes rent expense as the lessee uses the leased asset over time.

 

96. Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is not true? A. The capital, or finance, lease method treats leases equivalent to installment purchases or sales, where the lessee borrows funds from the lessor to purchase the asset and the lessor recognizes profit at the time of sale.B. The lessee records the leased asset and the lease liability on the balance sheet at the present value of the contractual cash flows at the time of signing the lease. C. The lessee amortizes the leased asset, similar to recognizing depreciation on buildings and equipment. D. The lessee recognizes interest expense on the lease liability, similar to recognizing interest expense on long-term notes or bonds.E. The lessor records the signing of a capital lease differently than if the lessor sold the leased asset for an installment note receivable.

 

97. Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is not true? A. The capital, or finance, lease method treats leases equivalent to installment purchases or sales, where the lessee borrows funds from the lessor to purchase the asset and the lessor recognizes profit at the time of sale.B. The lessee records the leased asset and the lease liability on the balance sheet at the present value of the contractual cash flows at the time of signing the lease. C. The lessee amortizes the leased asset, similar to recognizing depreciation on buildings and equipment. D. The lessor recognizes interest expense on the lease liability, similar to recognizing interest expense on long-term notes or bonds.E. The lessor records the signing of a capital lease the same as if the lessor sold the leased asset for an installment note receivable.

 

98. Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is not true? A. The capital, or finance, lease method treats leases equivalent to installment purchases or sales, where the lessee borrows funds from the lessor to purchase the asset and the lessor recognizes profit at the time of sale.B. The lessee records the leased asset and the lease liability on the balance sheet at the present value of the contractual cash flows at the time of signing the lease. C. The lessor amortizes the leased asset, similar to recognizing depreciation on buildings and equipment. D. The lessee recognizes interest expense on the lease liability, similar to recognizing interest expense on long-term notes or bonds.E. The lessor records the signing of a capital lease the same as if the lessor sold the leased asset for an installment note receivable.

 

99. Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is not true? A. The capital, or finance, lease method treats leases equivalent to installment purchases or sales, where the lessee borrows funds from the lessor to purchase the asset and the lessor recognizes profit at the time of sale.B. The lessor records the leased asset and the lease liability on the balance sheet at the present value of the contractual cash flows at the time of signing the lease. C. The lessee amortizes the leased asset, similar to recognizing depreciation on buildings and equipment. D. The lessee recognizes interest expense on the lease liability, similar to recognizing interest expense on long-term notes or bonds.E. The lessor records the signing of a capital lease the same as if the lessor sold the leased asset for an installment note receivable.

 

100. Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is not true? A. The capital, or finance, lease method treats leases equivalent to installment purchases or sales, where the lessor borrows funds from the lessee to purchase the asset and the lessee recognizes profit at the time of sale.B. The lessee records the leased asset and the lease liability on the balance sheet at the present value of the contractual cash flows at the time of signing the lease. C. The lessee amortizes the leased asset, similar to recognizing depreciation on buildings and equipment. D. The lessee recognizes interest expense on the lease liability, similar to recognizing interest expense on long-term notes or bonds.E. The lessor records the signing of a capital lease the same as if the lessor sold the leased asset for an installment note receivable.

 

 

Continue to order Get a quote
Place your order
(550 words)

Approximate price: $22

July 1, 2023
    

 

 

131. Claitin Inc. uses large warehouses to store its finished goods ready for sale. After its personnel and auditors conducted a physical inventory of goods on one side of its warehouses, Claitin Inc. transported a portion of the inventory to another part of the warehouse, removing the inventory tags that indicated that the items had already been counted in inventory, and thereby included the items a second time in inventory. In this way, the firm overstated its ending inventory for the current year, understated its cost of goods sold, and overstated its earnings. This action resulted in an overstatement of the beginning inventory for the next year. Assuming a correct count of the ending inventory for the second year, the action has the result of overstating cost of goods sold for the second year and understating earnings. Net income for the two years combined, however, is correctly stated, the net result of an overstatement in the first year offset by an equal understatement in the second year. The actions 
A. are in accordance with U.S. GAAP.
B. are in accordance with IFRS.
C. violate ethical principles.
D. are in accordance with U.S. GAAP, but not IFRS.
E. are in accordance with IFRS, but not U.S. GAAP.

 

132. On December 10 of the current year, XTREME Sports Inc. receives an advance of $50,000 from a hockey team for 20,000 custom-made shirts with the team’s logo, which the team intends to distribute to fans entering a hockey game during the first week in January. XTREME Sports Inc. completes the manufacturing of the shirts on December 30, intending to ship them on December 31 before its accounting period ends. Unfortunately, a snowstorm on December 31 prevented their shipment. XTREME Sports Inc. recorded this transaction as a sale for December, and reduced its inventory accordingly. It set the items aside in its shipping room on December 31 with a clear sign to its own personnel conducting a physical inventory on that date and to its auditors who were observing the count that the items were not to be counted as inventory. These actions 
A. are in accordance with U.S. GAAP.
B. are in accordance with IFRS.
C. violate ethical principles.
D. are in accordance with U.S. GAAP, but not IFRS.
E. are in accordance with IFRS, but not U.S. GAAP.

 

133. On August 1, Covington Motors pays £18,000 for insurance coverage for the next 12 months. On August 1, the firm records the following journal entry:  
A. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000  
     Insurance Expense . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 18,000
B. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000  
     Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . . . 18,000
C. Insurance Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . 18,000  
     Prepaid Insurance  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
D. Liability for Prepaid Insurance . . . . . . .  . . . . . . . . . . . . . . . . . . . .  . . . . 18,000 
     Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . . . 18,000
E. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 18,000  
     Liability for Prepaid Insurance . . . . . . .  . . . . . . . . . . . . . . . . . . . .  . .. . . . 18,000

 

134. On August 1, Covington Motors pays £18,000 for insurance coverage for the next 12 months. On August 1, the firm records the following journal entry:

Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
     Cash. . . . . . . . . . . . . . . . . . . . .  . . . . . . . .  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000

At the end of each of the next 12 months, the firm records the following adjusting entry:  
A. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500  
     Insurance Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 1,500
B. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500 
     Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . . . . 1,500
C. Insurance Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . 1,500  
     Prepaid Insurance  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500
D. Liability for Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,500 
     Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . . . 1,500
E. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 1,500 
     Liability for Prepaid Insurance . . . . . . .  . . . . . . . . . . . . . . . . . . . . .  .  . . . . 1,500

 

135. Focus Company sells merchandise with a one year warranty.  In 2013, sales consisted of 2,500 units.  It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2013 and 70% in 2014.  In the 2013 income statement, Focus should show warranty expense of 
A. $25,000
B. $7,500
C. $17,500
D. $0
E. $12,500

 

136. During September, Genesis sold 100 radios for $50 each.  Each radio cost Genesis $30 to purchase, and carried a two-year warranty.  If 5% typically need to be replaced over the warranty period and one is actually replaced during September, for what amount in September would Genesis debit Product Warranty Expense? 
A. $50
B. $150
C. $30
D. $120
E. $52.50

 

137. Albion Company sells merchandise with a one year warranty.  In 2013, sales consisted of 2,500 units.  It is estimated that warranty repairs will average $20 per unit sold, and 30% of the repairs will be made in 2013 and 70% in 2014.  In the 2013 income statement, Albion should show warranty expense of:  
A. $15,000
B. $35,000
C. $50,000
D. $0
E. $25,000

 

138. Youngstown Company sells merchandise with a one year warranty.  Sales consisted of 2,500 units in 2013 and 2,000 units in 2014.  It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2013 and 70% in 2014 for the 2013 sales. Similarly, 30% of repairs will be made in 2014 and 70% in 2015 for the 2014 sales.  In the 2014 income statement, how much of the  warranty expense shown will be due to 2013 sales?  
A. $7,500
B. $17,500
C. $25,000
D. $0
E. $12,500

 

139. Under U.S. GAAP, the cost of a product warranty should be included as an expense in the  
A. period the cash is collected for a product sold on account.
B. future period when the cost of repairing the product is paid.
C. period of the sale of the product.
D. future period when the product is repaired or replaced.
E. past period when the product is under development.

 

140. Lager Company sells merchandise with a one year warranty.  In 2013, sales consisted of 1,600 units.  It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2013 and 70% in 2014.  In the 2013 income statement, Lager should show warranty expense of  
A. $4,800
B. $11,200
C. $16,000
D. $0
E. $8,000

 

 

default image
July 1, 2023
    

 

 

131. Claitin Inc. uses large warehouses to store its finished goods ready for sale. After its personnel and auditors conducted a physical inventory of goods on one side of its warehouses, Claitin Inc. transported a portion of the inventory to another part of the warehouse, removing the inventory tags that indicated that the items had already been counted in inventory, and thereby included the items a second time in inventory. In this way, the firm overstated its ending inventory for the current year, understated its cost of goods sold, and overstated its earnings. This action resulted in an overstatement of the beginning inventory for the next year. Assuming a correct count of the ending inventory for the second year, the action has the result of overstating cost of goods sold for the second year and understating earnings. Net income for the two years combined, however, is correctly stated, the net result of an overstatement in the first year offset by an equal understatement in the second year. The actions 
A. are in accordance with U.S. GAAP.
B. are in accordance with IFRS.
C. violate ethical principles.
D. are in accordance with U.S. GAAP, but not IFRS.
E. are in accordance with IFRS, but not U.S. GAAP.

 

132. On December 10 of the current year, XTREME Sports Inc. receives an advance of $50,000 from a hockey team for 20,000 custom-made shirts with the team’s logo, which the team intends to distribute to fans entering a hockey game during the first week in January. XTREME Sports Inc. completes the manufacturing of the shirts on December 30, intending to ship them on December 31 before its accounting period ends. Unfortunately, a snowstorm on December 31 prevented their shipment. XTREME Sports Inc. recorded this transaction as a sale for December, and reduced its inventory accordingly. It set the items aside in its shipping room on December 31 with a clear sign to its own personnel conducting a physical inventory on that date and to its auditors who were observing the count that the items were not to be counted as inventory. These actions 
A. are in accordance with U.S. GAAP.
B. are in accordance with IFRS.
C. violate ethical principles.
D. are in accordance with U.S. GAAP, but not IFRS.
E. are in accordance with IFRS, but not U.S. GAAP.

 

133. On August 1, Covington Motors pays £18,000 for insurance coverage for the next 12 months. On August 1, the firm records the following journal entry:  
A. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000  
     Insurance Expense . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 18,000
B. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000  
     Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . . . 18,000
C. Insurance Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . 18,000  
     Prepaid Insurance  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
D. Liability for Prepaid Insurance . . . . . . .  . . . . . . . . . . . . . . . . . . . .  . . . . 18,000 
     Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . . . 18,000
E. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 18,000  
     Liability for Prepaid Insurance . . . . . . .  . . . . . . . . . . . . . . . . . . . .  . .. . . . 18,000

 

134. On August 1, Covington Motors pays £18,000 for insurance coverage for the next 12 months. On August 1, the firm records the following journal entry:

Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
     Cash. . . . . . . . . . . . . . . . . . . . .  . . . . . . . .  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000

At the end of each of the next 12 months, the firm records the following adjusting entry:  
A. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500  
     Insurance Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 1,500
B. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500 
     Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . . . . 1,500
C. Insurance Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . 1,500  
     Prepaid Insurance  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500
D. Liability for Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,500 
     Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . . . 1,500
E. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 1,500 
     Liability for Prepaid Insurance . . . . . . .  . . . . . . . . . . . . . . . . . . . . .  .  . . . . 1,500

 

135. Focus Company sells merchandise with a one year warranty.  In 2013, sales consisted of 2,500 units.  It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2013 and 70% in 2014.  In the 2013 income statement, Focus should show warranty expense of 
A. $25,000
B. $7,500
C. $17,500
D. $0
E. $12,500

 

136. During September, Genesis sold 100 radios for $50 each.  Each radio cost Genesis $30 to purchase, and carried a two-year warranty.  If 5% typically need to be replaced over the warranty period and one is actually replaced during September, for what amount in September would Genesis debit Product Warranty Expense? 
A. $50
B. $150
C. $30
D. $120
E. $52.50

 

137. Albion Company sells merchandise with a one year warranty.  In 2013, sales consisted of 2,500 units.  It is estimated that warranty repairs will average $20 per unit sold, and 30% of the repairs will be made in 2013 and 70% in 2014.  In the 2013 income statement, Albion should show warranty expense of:  
A. $15,000
B. $35,000
C. $50,000
D. $0
E. $25,000

 

138. Youngstown Company sells merchandise with a one year warranty.  Sales consisted of 2,500 units in 2013 and 2,000 units in 2014.  It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2013 and 70% in 2014 for the 2013 sales. Similarly, 30% of repairs will be made in 2014 and 70% in 2015 for the 2014 sales.  In the 2014 income statement, how much of the  warranty expense shown will be due to 2013 sales?  
A. $7,500
B. $17,500
C. $25,000
D. $0
E. $12,500

 

139. Under U.S. GAAP, the cost of a product warranty should be included as an expense in the  
A. period the cash is collected for a product sold on account.
B. future period when the cost of repairing the product is paid.
C. period of the sale of the product.
D. future period when the product is repaired or replaced.
E. past period when the product is under development.

 

140. Lager Company sells merchandise with a one year warranty.  In 2013, sales consisted of 1,600 units.  It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2013 and 70% in 2014.  In the 2013 income statement, Lager should show warranty expense of  
A. $4,800
B. $11,200
C. $16,000
D. $0
E. $8,000

 

 

default image
July 1, 2023
    

 

 

131. Claitin Inc. uses large warehouses to store its finished goods ready for sale. After its personnel and auditors conducted a physical inventory of goods on one side of its warehouses, Claitin Inc. transported a portion of the inventory to another part of the warehouse, removing the inventory tags that indicated that the items had already been counted in inventory, and thereby included the items a second time in inventory. In this way, the firm overstated its ending inventory for the current year, understated its cost of goods sold, and overstated its earnings. This action resulted in an overstatement of the beginning inventory for the next year. Assuming a correct count of the ending inventory for the second year, the action has the result of overstating cost of goods sold for the second year and understating earnings. Net income for the two years combined, however, is correctly stated, the net result of an overstatement in the first year offset by an equal understatement in the second year. The actions 
A. are in accordance with U.S. GAAP.
B. are in accordance with IFRS.
C. violate ethical principles.
D. are in accordance with U.S. GAAP, but not IFRS.
E. are in accordance with IFRS, but not U.S. GAAP.

 

132. On December 10 of the current year, XTREME Sports Inc. receives an advance of $50,000 from a hockey team for 20,000 custom-made shirts with the team’s logo, which the team intends to distribute to fans entering a hockey game during the first week in January. XTREME Sports Inc. completes the manufacturing of the shirts on December 30, intending to ship them on December 31 before its accounting period ends. Unfortunately, a snowstorm on December 31 prevented their shipment. XTREME Sports Inc. recorded this transaction as a sale for December, and reduced its inventory accordingly. It set the items aside in its shipping room on December 31 with a clear sign to its own personnel conducting a physical inventory on that date and to its auditors who were observing the count that the items were not to be counted as inventory. These actions 
A. are in accordance with U.S. GAAP.
B. are in accordance with IFRS.
C. violate ethical principles.
D. are in accordance with U.S. GAAP, but not IFRS.
E. are in accordance with IFRS, but not U.S. GAAP.

 

133. On August 1, Covington Motors pays £18,000 for insurance coverage for the next 12 months. On August 1, the firm records the following journal entry:  
A. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000  
     Insurance Expense . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 18,000
B. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000  
     Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . . . 18,000
C. Insurance Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . 18,000  
     Prepaid Insurance  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
D. Liability for Prepaid Insurance . . . . . . .  . . . . . . . . . . . . . . . . . . . .  . . . . 18,000 
     Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . . . 18,000
E. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 18,000  
     Liability for Prepaid Insurance . . . . . . .  . . . . . . . . . . . . . . . . . . . .  . .. . . . 18,000

 

134. On August 1, Covington Motors pays £18,000 for insurance coverage for the next 12 months. On August 1, the firm records the following journal entry:

Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
     Cash. . . . . . . . . . . . . . . . . . . . .  . . . . . . . .  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000

At the end of each of the next 12 months, the firm records the following adjusting entry:  
A. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500  
     Insurance Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 1,500
B. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500 
     Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . . . . 1,500
C. Insurance Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . 1,500  
     Prepaid Insurance  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500
D. Liability for Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,500 
     Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . . . . 1,500
E. Prepaid Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 1,500 
     Liability for Prepaid Insurance . . . . . . .  . . . . . . . . . . . . . . . . . . . . .  .  . . . . 1,500

 

135. Focus Company sells merchandise with a one year warranty.  In 2013, sales consisted of 2,500 units.  It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2013 and 70% in 2014.  In the 2013 income statement, Focus should show warranty expense of 
A. $25,000
B. $7,500
C. $17,500
D. $0
E. $12,500

 

136. During September, Genesis sold 100 radios for $50 each.  Each radio cost Genesis $30 to purchase, and carried a two-year warranty.  If 5% typically need to be replaced over the warranty period and one is actually replaced during September, for what amount in September would Genesis debit Product Warranty Expense? 
A. $50
B. $150
C. $30
D. $120
E. $52.50

 

137. Albion Company sells merchandise with a one year warranty.  In 2013, sales consisted of 2,500 units.  It is estimated that warranty repairs will average $20 per unit sold, and 30% of the repairs will be made in 2013 and 70% in 2014.  In the 2013 income statement, Albion should show warranty expense of:  
A. $15,000
B. $35,000
C. $50,000
D. $0
E. $25,000

 

138. Youngstown Company sells merchandise with a one year warranty.  Sales consisted of 2,500 units in 2013 and 2,000 units in 2014.  It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2013 and 70% in 2014 for the 2013 sales. Similarly, 30% of repairs will be made in 2014 and 70% in 2015 for the 2014 sales.  In the 2014 income statement, how much of the  warranty expense shown will be due to 2013 sales?  
A. $7,500
B. $17,500
C. $25,000
D. $0
E. $12,500

 

139. Under U.S. GAAP, the cost of a product warranty should be included as an expense in the  
A. period the cash is collected for a product sold on account.
B. future period when the cost of repairing the product is paid.
C. period of the sale of the product.
D. future period when the product is repaired or replaced.
E. past period when the product is under development.

 

140. Lager Company sells merchandise with a one year warranty.  In 2013, sales consisted of 1,600 units.  It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2013 and 70% in 2014.  In the 2013 income statement, Lager should show warranty expense of  
A. $4,800
B. $11,200
C. $16,000
D. $0
E. $8,000

 

 

default image
Essay (any type)
August 22, 2022
    

They have a magnificent team. These people are always kind and willing to listen to your concerns or issues. Better yet, your assignment is always ready before the time, they usually send you a draft to double-check before they finalize your paper.

 

default image
Customer #32567
Zoology, 8 Pages
Case study
August 22, 2022
    

Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.

default image
Customer #30093
Biology (and other Life Sciences), 6 pages
Presentation/PPT
August 22, 2022
    

The work has not been graded but I like the output that was submitted to me. Is it possible for the same prof to do the next assignment I will be submitting? If possible, I will greatly appreciate it.

default image
Customer #37612
Computer science, 8 pages
Journal article
August 22, 2022
    

My third using this writer and absolutely amazing work! Very punctual and very understanding.

default image
Customer #34820
Agriculture, 4 pages
Article
August 22, 2022
    

Outstanding job in writing my paper. I am always thrill to receive a well written paper that follows the instructions and the thorough details put into my paper. The quality of this paper is beyond awesome. Thank you so much.

default image
Customer #17907
Technology, 5 pages
Thesis/Thesis chapter
August 22, 2022
    

I absolutely love this writer! He/she always cranks out a fabulous paper and follows the assignment guidelines/instructions perfectly. Thanks again for always providing such quality work!!!

default image
Customer #32146
Economics, 9 pages
Research paper
August 22, 2022
    

It took some time to achieve the product I was looking for, but we eventually got there. I do feel like a lot of hard work was put into this, and it even exceeded the page requirement. I'm pretty pleased overall. I give my thanks.

default image
Customer #22371
Ecology, 5 pages
Lab Report
August 22, 2022
    

Outstanding work! This writer followed every instruction and my paper came back with an A! I recommend to anyone needing help! Thank you again ❤️

default image
Customer #13712
Nursing, 6 pages
Outline
August 22, 2022
    

Outstanding job in writing my paper. I am always thrill to receive a well written paper that follows the instructions and the thorough details put into my paper. The quality of this paper is beyond awesome. Thank you so much.

default image
Customer #267302
IT, Web, 6 pages
Essay (any type)
August 22, 2022
    

Made 100% on both the outline and the paper. Quick turnaround time and my writer responded within 30 min or less. Any edits my instructor needed, my writer was patient and worked diligently to accomplish the task. Would recommend my writer to anyone!

default image
Customer #14472
International Trade, 8 pages
Essay (any type)
August 5, 2021
    

You are making my life so much easier! I am a single mom that works and goes to school. You guys are helping me with my projects so I can have more free time with my son.

default image
customer #13832
Tourism, 3 pages
Annotated Bibliography
August 5, 2021
    

I was sure it can fit in a single page but the next time I will add one more page because I am impressed with your professionalism and quality. Will use many more times till I graduate.

default image
customer #12008
Management, 7 pages
Essay (any type)
August 5, 2021
    

Simple registration and quality services. I just ordered one paper, and it was good enough to pass the exam. That is what I need the most. Good job.

default image
customer #16257
Communication, 4 pages
Research Proposal
August 5, 2021
    

I couldn’t finish my freaking essay, and I was very desperate. A friend of mine sent me a link, and that is how I found out about you guys. Thank you for professional tips and editing. Now, I understand how to write it properly.

default image
customer #17128
Law, 5 pages
Reflection
August 5, 2021
    

I’m so grateful to you since you managed to complete my term paper in one day! You are definitely the best company ever!

default image
customer #16528
Public Relations, 7 pages
Essay (any type)
August 5, 2021
    

I am sure on your ability to provide any type of paper I will order. I wish I could develop that skill your writers have to be able to have a flow of ideas and excellent sequencing of thoughts in writing.

default image
customer #19552
Medicine, 5 pages
Coursework
August 5, 2021
    

I ordered a thesis paper and was satisfied. All the guys were polite and highly professional, even when I wrote to them several times per day. Thanks for your passion!

default image
customer #20376
Nursing, 6 pages
Discussion Essay
August 5, 2021
    

I turned to the service twice, and my papers always were beyond the expectations. To tell the truth, I was ready to find some grammar errors or something like that. However, everything was neat and tidy.

default image
customer #18529
Marketing, 1 page
August 5, 2021

My friend recommended Doctor My Essay to me. It is convenient! Now we both turn to the service periodically coz wanna save some time and use it more effectively. I know that while I’m developing my startup, an expert is working on paper. Time management in work!

default image
Research Paper
August 5, 2021
    

I write all paper works by myself but have some problems with literacy. Actually, I have enormous problems because English is not my native language. However, with proofreading from Doctor My Essay, I can relax and don’t be ashamed of mistakes.

default image
customer #12924
Business, 7 pages
Argumentative Essay
August 5, 2021
    

Your ability to write concisely is a finding. The paper has a solid argument. It’s clear that the writer understood central claim about the topic. He also presented original ideas to consider.

default image
customer #19304
Management, 3 pages
Coursework
August 5, 2021
    

That paper got the highest grade in my class and the professor thinks I’m the smartest student. Lol.

default image
customer #12387
Accounting, 6 pages
Essay (any type)
August 5, 2021
    

I was convinced that paper writing services are the fiction for naive students. But when it came to my research paper that was to be composed in 72 hours, I had no other options. I made the right choice when I ordered it from you!

default image
customer #12924
Ethics, 4 pages
Business Plan
August 5, 2021
    

I was also satisfied with the service. Usually, I write everything by myself, but this time ( I have no idea how it happens!) I missed the deadline. My writer was very responsible, wrote the essay quickly, and kept the instructions. Nice to know that such experts exist!

default image
customer #15677
Marketing, 10 pages
Annotated Bibliography
August 5, 2021
    

It is really affordable! The prices start from 9$, which is an excellent proposal on the market. Recently I worked with another service that took much more money and provided lower quality papers.

default image
customer #11234
Sociology, 9 pages
Research proposal
August 5, 2021
    

I am absolutely satisfied. I am first timer here. Revision was made quickly, and the author met my expectations. Thanks a lot. Paper is phenomenal.

default image
customer #15327
Economics, 5 pages
Essay (any type)
August 5, 2021
    

Having heard a lot of negative reviews about such services, I was a bit skeptical. However, our cooperation with Doctor My Essay was without pitfalls. I made two comments about the final work, and they re-wrote some parts very promptly. I am satisfied and will turn to them in the future.

default image
customer #17823
Human Resource Management, 2 pages
Research paper
August 5, 2021
    

It was my first experience in online ordering, and I was a bit nervous. However, this was for nothing. I’ve got a high mark!

default image
customer #12372
Public Relations, 3 pages
Dissertation
August 5, 2021
    

I understand that buying essays is a doubtful thing. You don’t put effort, don’t represent your ideas… However, I don’t perceive Doctor My Essay as a standard service. They don’t sell papers. They share high expertise!

default image
customer #12376
Journal article, 20 pages
Coursework
August 5, 2021
    

According to my previous experience, this service is really the best. They support the client and have competitive writers. I give them a perfect score!

default image
customer #19266
Political Science, 6 pages
Admission Essay
August 5, 2021
    

Nice service! It is cool that you can use the calculator on the main page and understand the price policy. For me, it is a huge plus!

default image
customer #11437
Tourism, 1 page
Discussion Essay
August 5, 2021
    

Thanks to God I found this service! If I didn’t send my research to the teacher on time, he would eat me. I tell you! However, with doctor my essay service, I met the deadline, and I am still alive.

default image
customer #12692
Philosophy, 5 pages
Report
August 5, 2021
    

Your service is excellent! Convenient and not expensive. Thanks for that!

default image
customer #10923
Psychology, 4 pages
Essay (any type)
August 5, 2021
    

If you have problems with time management, just like me, you need to cooperate with Doctor My Essay. Once you registered and made the order, you understand how easier it makes your life! Everything is online: ordering, communication… You can control the process everywhere and be sure that an expert will provide a high-level paper.

default image
customer #17823
Business, 8 pages

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more