Computing Pension Expense and Payments Banquak Co. maintains a defined contribution pension plan for its...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Computing Pension Expense and Payments
Banquak Co. maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the pension funds. Assume that the pension cost is $250,000 for the quarter ended December 31. Prepare the journal entries to record the accrued pension liability on December 31 and the payment to the pension funds on January 5.
Warranty
Quick Manufacturing Co. warrants its products for one year. The estimated product warranty is 10% of sales. The sales were NT$770,000 for April. In September, the actual warranty repair costs were NT$45,000.
1. Prepare the entry to record the accrued product warranty at April 30. 2. Journalize the entry to record the warranty cost in September
Computing Warranty Expense
ASEN Computer Co. warrants its products for one year. The estimated product warranty is 5% of sales. Assume that the sales were NT$1,000,000 for January. On February 5, a customer received warranty repairs requiring NT$4,250 of parts and of NT$2,750 of labor.
1. Prepare the adjusting entry required at January 31 to record the accrued product warranty. 2. Prepare the journal entries to record the warranty work provided in February.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
