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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, 20 employees qualify for one vacation day each. Their average daily wage is $290 per employee.

2.

During December, Maxum Company sold 3,200 units of a product that carries a 60-day warranty. December sales for this product total $138,000. The company expects 7% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $11.


 

Prepare any necessary adjusting entries at December 31, 2015, for Maxum Company?s year-end financial statements for each of the above separate transactions and events.


 


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