Acct excel and forum

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stice19_student_07-51.xlsx
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07-51

07-51 Name:
Enter the appropriate amounts/formulas in the blue-shaded cells, or select from the drop-down list.
The word "Wrong" will appear to the left of incorrect entries. The essay answer will not be graded.
GENERAL JOURNAL
Account Title Debit Credit
2014 Cash
Cash, Inventories, etc.
Estimated Liability under Warranties
Sales
Warranty Expense
2015
2016
Ending balance in liability account*
Predicted warranty expense (2015 sales still under warranty 12 months)
Difference
* Balance in liability account at end of 2014
Increase in liability account during 2015
Decrease in liability account during 2016
Balance in liability account at end of 2016
Should Sound Portal revise its warranty estimates?
(Key essay answer here)

Solution

07-51 Name: Solution
Enter the appropriate amounts/formulas in the blue-shaded cells, or select from the drop-down list.
The word "Wrong" will appear to the left of an incorrect amount. The essay answer will not be graded.
GENERAL JOURNAL
Account Title Debit Credit
2014 Cash 1,225,500 Cash
Sales 1,225,500 Cash, Inventories, etc.
Estimated Liability under Warranties
Warranty Expense 70,950 Sales
Estimated Liability under Warranties 70,950 Warranty Expense
2015 Cash 1,078,000
Sales 1,078,000
Warranty Expense 60,500
Estimated Liability under Warranties 60,500
Estimated Liability under Warranties 28,500
Cash, Inventories, etc. 28,500
2016 Estimated Liability under Warranties 66,000
Cash, Inventories, etc. 66,000
Ending balance in liability account* $ 36,950
Predicted warranty expense (2015 sales still under warranty 12 months) 36,300
Difference $ 650
* Balance in liability account at end of 2014 $ 70,950
Increase in liability account during 2015 32,000
Decrease in liability account during 2016 (66,000)
Balance in liability account at end of 2016 $ 36,950
Should Sound Portal revise its warranty estimates?
The difference is relatively small, indicating an accurate estimate of warranty expense. Sound Portal Corporation should continue to use the current estimates until experience indicates otherwise.