obsolescence. • Warranty obligations. • Depreciation method or asset useful life. • Provision against the carrying amount of an investment where there is uncertainty regarding its recoverability. • Outcome of long term contracts. • Costs arising from litigation settlements and judgments. • Warranty expense is the cost that a business expects to or has already incurred for the repair or replacement of goods that it has sold. The total amount of warranty expense is limited by the warranty period that
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Prepare 2014 entries for Crow using the expense warranty approach. Assume that Crow estimates the total cost of servicing the warranties will be $120‚000 for 2 years. Warranty Liability………….$20‚000 Warranty Cash …………………...$20‚000 (Warranty cash incurred) Warranty Expense …............120‚000 Warranty Liability……………….....120‚000 (To accrued estimated warranty cost) (b) Prepare 2014 entries for Crow assuming that the warranties are not an integral part of the sale. Assume
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quitclaim deed‚ whereas Gemma wants a warranty deed. Discuss the differences between these deeds as they would affect the rights of the parties if the title to this ten feet of land later proved to be defective.” This paper will explain the differences between a quitclaim deed and a warranty deed. While explaining why Gemma wants a warranty deed versus a quitclaim deed. Deeds First we must start by explaining the difference between a Quit Claim Deed and a Warranty Deed. As Defined on uslegal.com
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Case 8-4: Joan Holtz (D)* Note: This case is unchanged from the Tenth Edition. Approach As with the earlier Joan Holtz cases‚ this one enables students to discuss some interesting issues‚ none of which requires a full class period. The instructor should be alert to newer situations to augment or supplant any of those described in the case. Also many of these issues tend eventually to result in an FASB‚ AICPA‚ or SEC pronouncement. Since seldom will a beginning student be aware of these pronouncements
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Joan Holtz (D)* 1. 2010 late-night talk show indicated the existence of an unclaimed municipal bond issued in 1883 by a town in Missouri. The bond was $100 with an interest rate on 10%. At a compound interest‚ what would be the bonds value in 2010. 2. (a) Joan read that a company issued eight-year‚ zero-coupon bonds at a price of 327 per 1‚000 par value. The question asked‚ was the yield on these bonds 15 percent‚ as Joan had calculated. Yes! (b) Assuming that bond discount amortization
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the warranty I purchased along with my laptop. I received nothing but negative feedback. I was told that the warranty was void even though there were two weeks left on the warranty. I scanned my receipt and sent it over to your customer service department for review. The receipt had both the laptop and warranty purchases on it. I purchased both of these items on January 28th‚ 2012. I called when I was still able to access my warranty‚ however I have had no success with having the warranty honored
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CUM CERTIFICATE OF EXTENDED WARRANTY REGISTRATION Invoice No. Contract No. Dealer Code Customer Name : 10161414 : 123239996 : F801-F8-01 : RAMANLAL PANDYA Date : 23-Oct-2012 Customer Address : NAVRANG PURA NR BUS STAND‚ AT&POST-NIKORA‚ TALUKA&DISTRICT‚ BHARUCH The extended warranty is awarded to the vehicle model NEW WAGON-R with VIN No. MA3EWDE1S00440762. Basic Price : 3‚050.00 376.98 3‚426.98 Service Tax @ 12.36% : Total (In Rupees) : This extended warranty is applicable for Option-I
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Before The Hon’ble High Court of Madras‚ Tamil Nadu Application No _____/1983 C.V. George……………………...………………….………………………... Appellant v. Marshall Sons.………………………...………………............................ Respondent Table of Contents Index of Authorities……………………………………………………………..2 Statement of Jurisdiction…………………………………………………………2 Statement of Facts………………………………………………………………..3 Questions Presented……………………………………………………………....4 Summary of Pleadings……………………………………………………………5 Pleadings…………………………………………………………………………8
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Chapter 6: Revenue RecognitionRead: Chapter 6 and partly 13 on warrantyIn-class exercises: BE6-7‚ EX6-11‚ EX6-9‚ EX6-16‚ EX6-18 Practice exercises: EX6-7‚ BE6-11‚ P6-1‚ P6-2‚ E13-17 There are two main conceptual views on how to account for revenues/sales: Earnings approach Contract-based approach Earnings Approach Revenues are recognized when the following criteria are met: 1. Performance is achieved: a. risks and rewards transferred and/or earnings process substantially complete‚ and
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Ltd.’s has a warranty plan. The estimated warranty liability is 10% of cost of goods sold‚ and cost of goods sold for this year was $30‚000. By the year end‚ $1000 of the warranty costs was actually incurred. Assume that the company did not replenish the warranty reserve after it is used. (a) Year-end liability and expenses for the year: Liabilities: $2‚000 Expenses: $3‚000 (b) Journal entries: Dr Warranty Expense $3‚000 Cr Provision for warranty $3‚000 Dr Provision for warranty $1‚000 Cr
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