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P11-28A J ournalizing liablity transactions The following transactions of Oscar

ID: 2599030 • Letter: P

Question

P11-28A J ournalizing liablity transactions The following transactions of Oscar Landing occurred during 2016 Apr. 30 Landing is party to a patent infringement lawsuit of $220,000. Landing's Jun. 30 Estimated warranty expense at 2% of sales of $420,000. attorney is certain it is remote that Landing will lose this lawsuit. Warranty claims paid in the amount of $5,800 Landing is party to a lawsuit for copyright violation of $110,000. Landing's attorney advises that it is probable Landing will lose this lawsuit. The attorney estimates the loss at $110,000 Landing estimated warranty expense on sales for the second half of the year of $460,000 at 2%. Jul. 28 Sep. 30 Dec. 31 Requirements 1. Journalize required transactions, if any, in Landing's general journal. Explanations are not required 2. What is the balance in Estimated Warranty Payable assuming a beginning balance of $0?

Explanation / Answer

P11-28A: Oscar Landing

Requirement 1

Requirement 2

P11-35: Daniels Consulting

Requirements 1, 2, 3

Date Accounts and Explanation Debit Credit 2016 Apr. 30 No entry required Jun. 30 Warranty expense (2% x $420000) 8400 Estimated warranty payable 8400 Jul. 28 Estimated warranty payable 5800 Cash 5800 Sep. 30 Estimated loss from lawsuit 110000 Estimated lawsuit payable 110000 Dec. 31 Warranty expense (2% x $460000) 9200 Estimated warranty payable 9200