Analyze each of the following transactions: (a) the copier's sale; (b) the adjustment to recognize the warranty expense on December 31
Analyze each of the following transactions: (a) the copier's sale; (b) the adjustment to recognize the warranty expense on December 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Liabilities
Equity
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it
![Required information
Use the following information for the Exercises below. (Algo)
[The following information applies to the questions displayed below.]
Hitzu Company sold a copier (that costs $6,500) for $13,000 cash with a two-year parts warranty to a customer on August
16 of Year 1. Hitzu expects warranty costs to be 5% of dollar sales. It records warranty expense with an adjusting entry on
December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs
cost $93 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copier.
Exercise 9-13 (Algo) Financlal statement impact of warranty transactions LO P4
Analyze each of the following transactions: (a) the copier's sale; (b) the adjustment to recognize the warranty expense on December 31
of Year 1; and (c) the repairs that occur on January 5 of Year 2. Show each transaction's effect on the accounting equation-specifically,
identify the accounts and amounts (including + or -) for each. (Enter all amounts as positive value.)
Date
Assets
Liabilities
August 16
%3D
%3D
August 16
December 31
January 5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97b5df25-1667-438a-b46e-c2a0d1ae7c86%2Fad34b22d-3905-456b-8ce8-6b6fedf216fe%2Fr1785to_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Use the following information for the Exercises below. (Algo)
[The following information applies to the questions displayed below.]
Hitzu Company sold a copier (that costs $6,500) for $13,000 cash with a two-year parts warranty to a customer on August
16 of Year 1. Hitzu expects warranty costs to be 5% of dollar sales. It records warranty expense with an adjusting entry on
December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs
cost $93 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copier.
Exercise 9-13 (Algo) Financlal statement impact of warranty transactions LO P4
Analyze each of the following transactions: (a) the copier's sale; (b) the adjustment to recognize the warranty expense on December 31
of Year 1; and (c) the repairs that occur on January 5 of Year 2. Show each transaction's effect on the accounting equation-specifically,
identify the accounts and amounts (including + or -) for each. (Enter all amounts as positive value.)
Date
Assets
Liabilities
August 16
%3D
%3D
August 16
December 31
January 5
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