chapter 10 -19 On the first day of the fiscal year, Shiller Company borrowed $32

Question

chapter 10 -19

On the first day of the fiscal year, Shiller Company borrowed $32,000 by giving a five-year, 11% installment note to Soros Bank. The note requires annual payments of $8,783, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $3,520 and principal repayment of $5,263.

Journalize the entries to record the following:

a1. Issued the installment note for cash on the first day of the fiscal year.

a2. Paid the first annual payment on the note. If an amount box does not require an entry, leave it blank.

Accrued Product Warranty

Harbour Company disclosed estimated product warranty payable for comparative years as follows:

Assume that Harbour's sales were $144,533 million in current Year and that the total paid on warranty claims during the current year was $12,634 million.

a. The distinction between short- and long-term liabilities is important to creditors in order to accurately evaluate the near-term cash demands on the business relative to the quick current assets and other longer-term demands .

b. Provide the journal entry for the Current Year product warranty expense. Enter your answers in millions.

Cash Notes Payable

Explanation / Answer

Journal entry :

Note : As per chegg policy only one question in one time if question is unrelated so you should post second question individually for answer.

Date accounts & explanation debit credit Cash 32000 Notes payable 32000 Notes payable 5263 Interest expenes 3520 Cash 8783

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