Entries by Grace Wahito

Ayayai Company began operations on January 2, 2016. It employs 12 individuals who work 8-hour days and are paid hourly.

March 3, 2020 in /by

Ayayai Company began operations on January 2, 2016. It employs 12 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are […]

 

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Merritt Equipment Company sells computers for $1,620 each and also gives each customer a 2-year warranty that requires the company to perform periodic services and to replace defective parts.

March 3, 2020 in /by

Merritt Equipment Company sells computers for $1,620 each and also gives each customer a 2-year warranty that requires the company to perform periodic services and to replace defective parts. During 2017, the company sold 860 computers. Based on past experience, the company has estimated the total 2-year warranty costs as $40 for parts and $60 for labor. (Assume sales all […]

 

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Kane Candy Company offers a coffee mug as a premium for every ten $1 candy bar wrappers presented by customers together with $2.

March 3, 2020 in /by

Kane Candy Company offers a coffee mug as a premium for every ten $1 candy bar wrappers presented by customers together with $2. The purchase price of each mug to the company is $1.80; in addition it costs $1.20 to mail each mug. The results of the premium plan for the years 2017 and 2018 are […]

 

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(a) Carla Co. sold $1,950,000 of 12%, 10-year bonds at 106 on January 1, 2017

March 3, 2020 in /by

(a) Carla Co. sold $1,950,000 of 12%, 10-year bonds at 106 on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on July 1 and January 1. If Carla uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2017, and December 31, 2017. (Round answer to 0 decimal […]

 

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