Review Exercise. Chapter. 11, 13 - 15. Exercise 1: Warranty Expense (Chap 11). August,16,2005 Chang Co. sold copier costing $3,800 with $5,500 cash Nov,22,2006 on-site repair of the copier with $199 repair inventory Chang expect warranty cost of 4% of dollar sales.
Oct,10 Nobel System’s statement of Stockholders’ Equity
January 1,2004 Steadman issue $350,000 of 10%, 15-year bond at a price 97.75. Six years later, Jan,1,2010 Steadman retires 20% of the bond with price 104.50. All interest paid before purchase. Straight-line amortization is used.
January 1,2005, Randa borrow $25,000 cash by signing a 4-year 7% Installment Note, Randa will pay equal payment on Dec,31,2005- 2008
Jan,2 Purchase 30,000 shares of Bushtex Co. common stock for $204,000 cash and broker’s fee $3,480 cash. Bushtex has 90,000 shares outstanding
Sept,1 Bushtex declare and Paid a Cash dividend $3.10
Dec,31 Bushtex announce Net income of $624,900
June,1 Bushtex declare and Paid a Cash dividend $3.60
Dec,31 Bushtex announce Net income of $699,750
Dec,31 Kash sold 10,000 shares of Bushtex for $162,500
Dec,27,2005 Forex Co. purchase investment in trading securities at a cost of $56,000
Dec,31,2005 these securities had a market value of $66,000
This is first and only purchase of such securities