Chapter 9

On October 1, 2022, ABC borrows $20,000 from the bank. The loan is to be repaid on March 31, 2023. The annual interest rate on the loan is 10%. All interest should be calculated monthly (not daily). Given this information, what is the total is the impact to the income statement for the year ended December 31, 2022?

-500

On October 1, 2022, ABC borrows $20,000 from the bank. The loan is to be repaid on March 31, 2023. The annual interest rate on the loan is 10%. All interest should be calculated monthly (not daily). Given this information, what is the total is the impact to the income statement for the year ended December 31, 2023?

-500

ABC sells products to customers with a warranty. Customers can return the products to ABC for a free replacement within 90 days of purchase. During April 2022, ABC sold 1,500 products to customers. During May, ABC sold 1,800 products to customers. Based on past sales, ABC estimates that 5% of all products sold will be returned for a free replacement. The products cost ABC $20 to produce and they are sold for $35 per item. During April, 100 products were returned and during May, 120 items were returned. As of March 31, 2022, ABC's Warranty Liability had a credit balance of $12,000. What is the impact on the May income statement from the 120 items returned by customers?

0

ABC is paying its employees for the work they have done during September 2022. Each employee is paid $5,000 per month and ABC has eight (8) employees. The federal income tax being withheld is 20% for each employee, the state income tax being withheld is 5%, and the Social Security being withheld is 6%. Given this information, what is the total amount that ABC will pay to government entities associated with this payroll (federal and state income tax and social security)?

14800

ABC sells products to customers with a warranty. Customers can return the products to ABC for a free replacement within 90 days of purchase. During April 2022, ABC sold 1,500 products to customers. During May, ABC sold 1,800 products to customers. Based on past sales, ABC estimates that 5% of all products sold will be returned for a free replacement. The products cost ABC $20 to produce and they are sold for $35 per item. During April, 100 products were returned and during May, 120 items were returned. As of March 31, 2022, ABC's Warranty Liability had a credit balance of $12,000. Based on this information, what should the warranty expense be for April 2022?

1500

On October 1, 2022, ABC borrows $20,000 from the bank. The loan is to be repaid on March 31, 2023. The annual interest rate on the loan is 10%. All interest should be calculated monthly (not daily). Given this information, what is the total amount that will be repaid to the bank on March 31, 2023?

21000

ABC sells products to customers with a warranty. Customers can return the products to ABC for a free replacement within 90 days of purchase. During April 2022, ABC sold 1,500 products to customers. During May, ABC sold 1,800 products to customers. Based on past sales, ABC estimates that 5% of all products sold will be returned for a free replacement. The products cost ABC $20 to produce and they are sold for $35 per item. During April, 100 products were returned and during May, 120 items were returned. As of March 31, 2022, ABC's Warranty Liability had a credit balance of $12,000. What is the impact on the May income statement from the sale of the 1,800 products (calculate the net impact of any revenues minus any expenses)?

25200

ABC is paying its employees for the work they have done during September, 2022. Each employee is paid $5,000 per month and ABC has eight (8) employees. The federal income tax being withheld is 20% for each employee, the state income tax being withheld is 5%, the Social Security being withheld is 6%. Given this information, what is the total cash that will be paid to the employees during September?

27600

ABC is paying its employees for the work they have done during September, 2022. Each employee is paid $5,000 per month and ABC has eight (8) employees. The federal income tax being withheld is 20% for each employee, the state income tax being withheld is 5%, the Social Security being withheld is 6%. Given this information, what is the total expense that ABC will recognize associated with this payroll (include both the salary expense and the Social Security expense)?

42400

ABC sells products to customers with a warranty. Customers can return the products to ABC for a free replacement within 90 days of purchase. During April 2022, ABC sold 1,500 products to customers. During May, ABC sold 1,800 products to customers. Based on past sales, ABC estimates that 5% of all products sold will be returned for a free replacement. The products cost ABC $20 to produce and they are sold for $35 per item. During April, 100 products were replaced and during May, 120 items were replaced. As of March 31, 2022, ABC's Warranty Liability had a credit balance of $12,000. If ABC had an inventory balance of $80,000 on March 31, 2022, what should the inventory balance be on April 30, 2022? No purchases of inventory were made during April or May 2022.

48000