Only need help with part B (b)Prepare 2020 entries for Kingbird assuming that the warranties are not an integral part of the sale (a service-type warranty).Assume that of the sales total, $53,000 relates to sales of warranty contracts.Warranty costs incurred in 2020 were $21,000.Estimate revenues to be recognized on a straight-line basis. (If no entry is required, select "No Entry" for the account titles and enter 0for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediatecalculations to 5 decimal places, eg. 1.54657 answers to O decimal places, e.g. 5,125. Record journal entries in the order presented in theproblem.)DateAccount Titles and ExplanationDebitCredit(To record warranty revenue) Early in 2020, Kingbird Equipment Company sold 600 Rollomatics at $5,400 each. During 2020, Kingbird spent $21,000 servicing the2-year assurance warranties that accompany the Rollomatic. All sales transactions are on a cash basis.Your AnswerCorrect Answer (Used)Your answer is partially correct.Prepare 2020 entries for Kingbird. Assume that Kingbird estimates the total cost of servicing the warranties in the second yearwill be $31,000. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles areautomatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebitCreditSalecash3240000Sales Revenue3240000uring 2020Warranty Expense21000Unearned Warranty Revenue21000ec. 31, 2020Warranty Expense31000

Since, you have specifically asked for part b so we have answered the same for you.b. Formulas:

(b) Prepare 2020 entries for Kingbird assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $53,000 relates to sales of warranty contracts.Warranty costs incurred in 2020 were $21,000. Estimate revenues to be recognized on a straight-line basis. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 5 decimal places, e.g. 1.54657 answers to 0 decimal places, e.g. 5,125. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record warranty revenue)

(b) Prepare 2020 entries for Kingbird assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $53,000 relates to sales of warranty contracts.Warranty costs incurred in 2020 were $21,000. Estimate revenues to be recognized on a straight-line basis. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 5 decimal places, e.g. 1.54657 answers to 0 decimal places, e.g. 5,125. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record warranty revenue)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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