Solved

Use the Following to Answer Questions

Question 32

Short Answer

Use the following to answer questions
In December 2016,Lucas Corporation sold merchandise for $10,000 cash.Lucas estimated that $700 of warranty claims might be filed in regard to these sales.On February 12,2017,warranty work amounting to $550 was performed for one of the customers ($430 labor paid in cash and $120 from the materials inventory).
53.Which of the following answers correctly shows the effect of the recognition of the warranty obligation at the end of 2016 on the financial statements of Lucas?
A.
B.
C.
D.
Use the following to answer questions In December 2016,Lucas Corporation sold merchandise for $10,000 cash.Lucas estimated that $700 of warranty claims might be filed in regard to these sales.On February 12,2017,warranty work amounting to $550 was performed for one of the customers ($430 labor paid in cash and $120 from the materials inventory). 53.Which of the following answers correctly shows the effect of the recognition of the warranty obligation at the end of 2016 on the financial statements of Lucas? A. B. C. D. Answer: D Learning Objective: 09-04 Topic Area: Warranty obligations AACSB: Analytical Thinking AACSB: Knowledge Application AICPA: FN Measurement AICPA: BB Critical Thinking Blooms: Analyze Blooms: Apply Level of Difficulty: 2 Medium Feedback: The entry to estimate future warranty costs related to 2016 sales increases expenses (warranty expense),which decreases net income and equity,and increases liabilities (warranties payable). -Which of the following answers indicates the effect of the February 12,2017 entry on the financial statements of Lucas Corporation? Use the following to answer questions In December 2016,Lucas Corporation sold merchandise for $10,000 cash.Lucas estimated that $700 of warranty claims might be filed in regard to these sales.On February 12,2017,warranty work amounting to $550 was performed for one of the customers ($430 labor paid in cash and $120 from the materials inventory). 53.Which of the following answers correctly shows the effect of the recognition of the warranty obligation at the end of 2016 on the financial statements of Lucas? A. B. C. D. Answer: D Learning Objective: 09-04 Topic Area: Warranty obligations AACSB: Analytical Thinking AACSB: Knowledge Application AICPA: FN Measurement AICPA: BB Critical Thinking Blooms: Analyze Blooms: Apply Level of Difficulty: 2 Medium Feedback: The entry to estimate future warranty costs related to 2016 sales increases expenses (warranty expense),which decreases net income and equity,and increases liabilities (warranties payable). -Which of the following answers indicates the effect of the February 12,2017 entry on the financial statements of Lucas Corporation? Use the following to answer questions In December 2016,Lucas Corporation sold merchandise for $10,000 cash.Lucas estimated that $700 of warranty claims might be filed in regard to these sales.On February 12,2017,warranty work amounting to $550 was performed for one of the customers ($430 labor paid in cash and $120 from the materials inventory). 53.Which of the following answers correctly shows the effect of the recognition of the warranty obligation at the end of 2016 on the financial statements of Lucas? A. B. C. D. Answer: D Learning Objective: 09-04 Topic Area: Warranty obligations AACSB: Analytical Thinking AACSB: Knowledge Application AICPA: FN Measurement AICPA: BB Critical Thinking Blooms: Analyze Blooms: Apply Level of Difficulty: 2 Medium Feedback: The entry to estimate future warranty costs related to 2016 sales increases expenses (warranty expense),which decreases net income and equity,and increases liabilities (warranties payable). -Which of the following answers indicates the effect of the February 12,2017 entry on the financial statements of Lucas Corporation? Use the following to answer questions In December 2016,Lucas Corporation sold merchandise for $10,000 cash.Lucas estimated that $700 of warranty claims might be filed in regard to these sales.On February 12,2017,warranty work amounting to $550 was performed for one of the customers ($430 labor paid in cash and $120 from the materials inventory). 53.Which of the following answers correctly shows the effect of the recognition of the warranty obligation at the end of 2016 on the financial statements of Lucas? A. B. C. D. Answer: D Learning Objective: 09-04 Topic Area: Warranty obligations AACSB: Analytical Thinking AACSB: Knowledge Application AICPA: FN Measurement AICPA: BB Critical Thinking Blooms: Analyze Blooms: Apply Level of Difficulty: 2 Medium Feedback: The entry to estimate future warranty costs related to 2016 sales increases expenses (warranty expense),which decreases net income and equity,and increases liabilities (warranties payable). -Which of the following answers indicates the effect of the February 12,2017 entry on the financial statements of Lucas Corporation? Use the following to answer questions In December 2016,Lucas Corporation sold merchandise for $10,000 cash.Lucas estimated that $700 of warranty claims might be filed in regard to these sales.On February 12,2017,warranty work amounting to $550 was performed for one of the customers ($430 labor paid in cash and $120 from the materials inventory). 53.Which of the following answers correctly shows the effect of the recognition of the warranty obligation at the end of 2016 on the financial statements of Lucas? A. B. C. D. Answer: D Learning Objective: 09-04 Topic Area: Warranty obligations AACSB: Analytical Thinking AACSB: Knowledge Application AICPA: FN Measurement AICPA: BB Critical Thinking Blooms: Analyze Blooms: Apply Level of Difficulty: 2 Medium Feedback: The entry to estimate future warranty costs related to 2016 sales increases expenses (warranty expense),which decreases net income and equity,and increases liabilities (warranties payable). -Which of the following answers indicates the effect of the February 12,2017 entry on the financial statements of Lucas Corporation? Answer: D
Learning Objective: 09-04
Topic Area: Warranty obligations
AACSB: Analytical Thinking
AACSB: Knowledge Application
AICPA: FN Measurement
AICPA: BB Critical Thinking
Blooms: Analyze
Blooms: Apply
Level of Difficulty: 2 Medium
Feedback: The entry to estimate future warranty costs related to 2016 sales increases expenses (warranty expense),which decreases net income and equity,and increases liabilities (warranties payable).
-Which of the following answers indicates the effect of the February 12,2017 entry on the financial statements of Lucas Corporation?
Use the following to answer questions In December 2016,Lucas Corporation sold merchandise for $10,000 cash.Lucas estimated that $700 of warranty claims might be filed in regard to these sales.On February 12,2017,warranty work amounting to $550 was performed for one of the customers ($430 labor paid in cash and $120 from the materials inventory). 53.Which of the following answers correctly shows the effect of the recognition of the warranty obligation at the end of 2016 on the financial statements of Lucas? A. B. C. D. Answer: D Learning Objective: 09-04 Topic Area: Warranty obligations AACSB: Analytical Thinking AACSB: Knowledge Application AICPA: FN Measurement AICPA: BB Critical Thinking Blooms: Analyze Blooms: Apply Level of Difficulty: 2 Medium Feedback: The entry to estimate future warranty costs related to 2016 sales increases expenses (warranty expense),which decreases net income and equity,and increases liabilities (warranties payable). -Which of the following answers indicates the effect of the February 12,2017 entry on the financial statements of Lucas Corporation? Use the following to answer questions In December 2016,Lucas Corporation sold merchandise for $10,000 cash.Lucas estimated that $700 of warranty claims might be filed in regard to these sales.On February 12,2017,warranty work amounting to $550 was performed for one of the customers ($430 labor paid in cash and $120 from the materials inventory). 53.Which of the following answers correctly shows the effect of the recognition of the warranty obligation at the end of 2016 on the financial statements of Lucas? A. B. C. D. Answer: D Learning Objective: 09-04 Topic Area: Warranty obligations AACSB: Analytical Thinking AACSB: Knowledge Application AICPA: FN Measurement AICPA: BB Critical Thinking Blooms: Analyze Blooms: Apply Level of Difficulty: 2 Medium Feedback: The entry to estimate future warranty costs related to 2016 sales increases expenses (warranty expense),which decreases net income and equity,and increases liabilities (warranties payable). -Which of the following answers indicates the effect of the February 12,2017 entry on the financial statements of Lucas Corporation? Use the following to answer questions In December 2016,Lucas Corporation sold merchandise for $10,000 cash.Lucas estimated that $700 of warranty claims might be filed in regard to these sales.On February 12,2017,warranty work amounting to $550 was performed for one of the customers ($430 labor paid in cash and $120 from the materials inventory). 53.Which of the following answers correctly shows the effect of the recognition of the warranty obligation at the end of 2016 on the financial statements of Lucas? A. B. C. D. Answer: D Learning Objective: 09-04 Topic Area: Warranty obligations AACSB: Analytical Thinking AACSB: Knowledge Application AICPA: FN Measurement AICPA: BB Critical Thinking Blooms: Analyze Blooms: Apply Level of Difficulty: 2 Medium Feedback: The entry to estimate future warranty costs related to 2016 sales increases expenses (warranty expense),which decreases net income and equity,and increases liabilities (warranties payable). -Which of the following answers indicates the effect of the February 12,2017 entry on the financial statements of Lucas Corporation? Use the following to answer questions In December 2016,Lucas Corporation sold merchandise for $10,000 cash.Lucas estimated that $700 of warranty claims might be filed in regard to these sales.On February 12,2017,warranty work amounting to $550 was performed for one of the customers ($430 labor paid in cash and $120 from the materials inventory). 53.Which of the following answers correctly shows the effect of the recognition of the warranty obligation at the end of 2016 on the financial statements of Lucas? A. B. C. D. Answer: D Learning Objective: 09-04 Topic Area: Warranty obligations AACSB: Analytical Thinking AACSB: Knowledge Application AICPA: FN Measurement AICPA: BB Critical Thinking Blooms: Analyze Blooms: Apply Level of Difficulty: 2 Medium Feedback: The entry to estimate future warranty costs related to 2016 sales increases expenses (warranty expense),which decreases net income and equity,and increases liabilities (warranties payable). -Which of the following answers indicates the effect of the February 12,2017 entry on the financial statements of Lucas Corporation? Use the following to answer questions In December 2016,Lucas Corporation sold merchandise for $10,000 cash.Lucas estimated that $700 of warranty claims might be filed in regard to these sales.On February 12,2017,warranty work amounting to $550 was performed for one of the customers ($430 labor paid in cash and $120 from the materials inventory). 53.Which of the following answers correctly shows the effect of the recognition of the warranty obligation at the end of 2016 on the financial statements of Lucas? A. B. C. D. Answer: D Learning Objective: 09-04 Topic Area: Warranty obligations AACSB: Analytical Thinking AACSB: Knowledge Application AICPA: FN Measurement AICPA: BB Critical Thinking Blooms: Analyze Blooms: Apply Level of Difficulty: 2 Medium Feedback: The entry to estimate future warranty costs related to 2016 sales increases expenses (warranty expense),which decreases net income and equity,and increases liabilities (warranties payable). -Which of the following answers indicates the effect of the February 12,2017 entry on the financial statements of Lucas Corporation?

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q15: On a classified balance sheet,the financial statement

Q27: The December 31,2016 balance sheet of Rowan

Q29: Indicate whether each of the following statements

Q31: Indicate how each event affects the elements

Q34: Zirkle Company borrowed $100,000 from Plains Bank

Q35: At the beginning of 2016,McKee,Inc.had a balance

Q36: The amount of cash flow from operating

Q37: On August 1,2016,Denver & Co.borrowed money from

Q74: Under what condition should a pending lawsuit

Q86: All lawsuits in which a company has