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Listed below are a few transactions and events of maxum company

05/11/2020 Client: papadok01 Deadline: 3 days

Listed below are a few transactions and events of Maxum Company.

1.
Employees earn vacation pay at a rate of one day per month. During December, 31 employees qualify for one vacation day each. Their average daily wage is $130 per employee.

2.
During December, Maxum Company sold 4,900 units of a product that carries a 60-day warranty. December sales for this product total $137,000. The company expects 8% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $18.

Prepare any necessary adjusting entries at December 31, 2013, for Maxum Company’s year-end financial statements for each of the above separate transactions and events.

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