Kohl Co.: Estimate Warranty Liability and Expense

Related BrainMass Solutions

• Amount of warranty liability

  206791 Venable Co: What amount of warranty liability should be reported at year end? Please help with the following problem.

• Warranties, Accrual, and Cash Basis

  D) Which method best reflects the income in 2008 and 2009 at A. Pujols co? why? A) 1. Sale of machinery - $4,810,000 ($7,400*650 machines) 2.

• This post addresses practice questions for intermediate acct

  Which of the following is a characteristic of the expense warranty approach, but not the sales warranty approach? a. Estimated liability under warranties b. Warranty Expense c. Unearned warranty revenue d.

• Liabilities: practice exam questions

  Expense; credit Unfunded Pension Liability and Cash Debit Pension Expense; credit Cash 15.

• Two types of current liabilities that must be estimated

  They don't know how many of the products will break but they must estimate the services that may be rendered over warranty period so that the warranty expense occurs in the same period as the sale (matching concept).

• The Use of Estimates in Financial Reporting

  For example, a depreciation estimate affects the net book values of fixed assets as well as depreciation expense, a warranty liability estimate affects warranty liability and warranty expense, and an estimate of revenue earned from a customer advance

• Accounting for Deferred Income Taxes at Earl Co.

  Extra depreciation (900,000) Taxable income $400,000 Estimated warranty expense of $530,000 will be deductible in 2005, $200,000 in 2006, and $70,000 in 2007.

• Accounting for Warranties / Warranty Revenue

  for warranty expenses Warranty Expense 20,000 Cash 20,000 Warranty Expense 100,000 Estimated Liability Under Warranties 100,000 ($120,000 - $20,000) (b)

• Multiple Choice Questions for Income Statements

  Accrual of warranty expense A deferred tax liability records the fact that the company will, in the future, pay more income tax because of a transaction that took place during the current period.