The following selected transactions relate to contingencies of classical tool makers, inc., which began operations in july 2018. classical’s fiscal year ends on december 31. financial statements are issued in april 2019. 1. classical's products carry a one-year warranty against manufacturer's defects. based on previous experience, warranty costs are expected to approximate 3% of sales. sales were $3.8 million (all credit) for 2018. actual warranty expenditures were $47,500 and were recorded as warranty expense when incurred. 2. although no customer accounts have been shown to be uncollectible, classical estimates that 2% of credit sales will eventually prove uncollectible. 3. in december 2018, the state of tennessee filed suit against classical, seeking penalties for violations of clean air laws. on january 23, 2019, classical reached a settlement with state authorities to pay $3.3 million in penalties. 4. classical is the plaintiff in a $5.8 million lawsuit filed against a supplier. the suit is in final appeal and attorneys advise that it is virtually certain that classical will win the case and be awarded $4.3 million. 5. in november 2018, classical became aware of a design flaw in an industrial saw that poses a potential electrical hazard. a product recall appears unavoidable. such an action would likely cost the company $680,000. 6. classical offered $20 cash rebates on a new model of jigsaw. customers must mail in a proof-of- purchase seal from the package plus the cash register receipt to receive the rebate. experience suggests that 70% of the rebates will be claimed. eleven thousand and eight hundred of the jigsaws were sold in 2018. total rebates to customers in 2018 were $123,000 and were recorded as promotional expense when paid. a) prepare the year-end entries for any amounts that should be recorded as a result of each of the above contingencies. b) indicate whether a disclosure note is needed for the above transactions.

Which of the following is an example of a production quota? a. the government sets an upper limit on the quantity that each dairy farmer can produce. b. the government sets a price floor in the market for dairy products. c. the government sets a lower limit on the quantity that each dairy farmer can produce. d. the government guarantees to buy a specified quantity of dairy products from farmers.

Increases in output and increases in the inflation rate have been linked to

The starr theater, owned by meg vargo, will begin operations in march. the starr will be unique in that it will show only triple features of sequential theme movies. as of march 1, the ledger of starr showed: cash $3,150, land $22,000, buildings (concession stand, projection room, ticket booth, and screen) $10,000, equipment $10,000, accounts payable $7,300, and owner’s capital $37,850. during the month of march, the following events and transactions occurred.mar. 2 rented the three indiana jones movies to be shown for the first 3 weeks of march. the film rental was $3,600; $1,600 was paid in cash and $2,000 will be paid on march 10.3 ordered the lord of the rings movies to be shown the last 10 days of march. it will cost $200 per night.9 received $4,500 cash from admissions.10 paid balance due on indiana jones movies rental and $2,200 on march 1 accounts payable.11 starr theater contracted with adam ladd to operate the concession stand. ladd is to pay 15% of gross concession receipts, payable monthly, for the rental of the concession stand.12 paid advertising expenses $900.20 received $5,100 cash from customers for admissions.20 received the lord of the rings movies and paid the rental fee of $2,000.31 paid salaries of $2,900.31 received statement from adam ladd showing gross receipts from concessions of $6,000 and the balance due to starr theater of $900 ($6,000 × 15%) for march. ladd paid one-half the balance due and will remit the remainder on april 5.31 received $9,200 cash from customers for admissions.1.) enter the beginning balances in the ledger.2.) journalize the march transactions. starr records admission revenue as service revenue, rental of the concession stand as rent revenue, and film rental expense as rent expense. (credit account titles are automatically indented when the amount is entered. do not indent manually. record journal entries in the order presented in the problem. if no entry is required, select "no entry" for the account titles and enter 0 for the amounts.)3.) post the march journal entries to the ledger. (post entries in the order of journal entries presented in the previous question.)