Accounting Help

hho9e_p10_16a_eip_stud.xlsx

P10-16A

Accounting, 9e
P10-16A	Journalizing liability transactions
LO 2 [20-25 minutes]
		Students please fill-in areas that are shaded
Student Name
Course Name
Student ID:
Date:
The following transactions of Brooks Garrett occurred during 2012:
Apr 30	Garrett is party to a patent infringement lawsuit of $200,000. Garrett’s attorney
	is certain it is remote that Garrett will lose this lawsuit.
Jun 30	Estimated warranty expense at 2% of sales of $400,000.
Jul 28	Warranty claims paid in the amount of $6,000.
Sep 30	Garrett is party to a lawsuit for copyright violation of $100,000. Garrett’s
	attorney advises that it is probable Garrett will lose this lawsuit.
Dec 31	Garrett estimates warranty expense on sales for the second half of the year of
	$500,000 at 2%.
Requirements
1.	Journalize required transactions, if any, in Garrett’s general journal.
	Explanations are not required.
2.	What is the balance in Estimated warranty payable?
Test Your Knowledge
P10-16A
Req. 1
Journal
DATE	ACCOUNTS AND EXPLANATIONS			DEBIT	CREDIT
2012
Apr 30
Jun 30
Jul 28
Sep 30
Dec 31
Req. 2
	Estimated warranty payable
	Jul 28	- 0	Jun 30	- 0
			Dec 31	- 0
			End Bal	- 0

student. date