Quiz two Essay Example | Topics and Well Written Essays - 1750 words

Quiz two - Essay Example The average cost of repairs under warranty is $45 for labour and $75 for parts per unit. During 2012, 2,500 exercise machines were sold at an average price of $800. During the year, 60 of the machines that were sold were repaired at the average price per unit. The opening balance in the Warranty Liability account is zero. 30. Taylor Companys payroll for the week ending January 15 amounted to $50,000 for Office Salaries and $120,000 for Store Wages. The following deductions were withheld from employees salaries and wages: On January 1, 2010, Andrews Corporation issued $900,000, 8%, 5-year bonds dated January 1, 2010, at 100 (this value was assumed as it was not given in the document) to yield 9%. The bonds pay semi-annual interest on January 1 and July 1. The company has a December 31 year end. On January 1, 2010, Callahan Corporation issued $600,000, 9%, 5-year bonds, dated January 1, 2007, at 104. The bonds pay interest semi-annually on January 1 and July 1. The company has a December 31 year end. Assume amortization of $1,700 and $2,100 respectively for the first two semi-annual interest periods. Hanna Manufacturing Limited receives $240,000 on January 1, 2010 when it issues a 6%, 3-year note payable to finance the purchase of equipment. The terms provide for annual payments each December 31. The first payment is due December 31, 2010. (a) Hillman Corporation purchased $150,000 of its bonds on June 30, 2011, at 102 and immediately retired them. The amortized cost of the bonds on the retirement date was $137,700. The bonds pay semi-annual interest and the interest payment due on June 30, 2011, has been made and recorded. (b) Dalton, Inc. purchased $200,000 of its bonds at 96 on June 30, 2011, and immediately retired them. The amortized cost of the bonds on the retirement date was $196,500. The bonds pay semi-annual interest and the interest payment due on June 30, 2011,