**Educational Content: Journal Entries and Balance Sheet Preparation****Instructions:**On August 1, 2019, Pereira Corporation sold 1,500 Wiglows to Mendez Company at $420 each. Mendez also purchased a 1-year service-type warranty on all the Wiglows for $10 per unit. In 2019, Pereira incurred warranty costs of $9,000. Costs for 2020 were $3,000.**Required:**1. Prepare the journal entries for the preceding transactions.2. Show how Pereira would report the items on the December 31, 2019, balance sheet.**General Journal:**1. Prepare the necessary journal entries to record: - The sale of Wiglows and service warranty on account on August 1, 2019 - The warranty costs paid during 2019 - The warranty revenue earned in 2019 - The warranty costs paid during 2020 - The warranty revenue earned in 2020**General Journal Table:**- Includes columns for Date, Account Title, Post Ref., Debit, and Credit.- Rows are numbered for individual entries.**Balance Sheet:**2. Show how Pereira would report the items on the December 31, 2019, balance sheet.**Balance Sheet Details:**- Title: Pereira Corporation Partial Balance Statement- Date: December 31, 2019- Section: Current LiabilitiesThis educational content provides a framework for understanding financial transactions and how to document them accurately in accounting records and reports. For further guidance, please refer to the associated journal and balance sheet instructions.

Journal entries are the primary reporting of the events happening in the business, in the books of…

Instructions * General Journal X Balance Sheet On August 1, 2019, Pereira Corporation has sold 1,500 Wiglows to Mendez Company at $420 each. Mendez also purchaseda 1- 1. Prepare the necessary joumal entries to record: 2. Show how Pereira would report the items on the December 31. 2019, balance sheet. year service-type warranty on all the Wiglows for $10 per unit. In 2019, Pereira incurred warranty costs of $9,000. Costs for 2020 were $3.000 1. The sale of Wiglows and service warranty on account on August 1, 2019 Balance Sheet Instruction Required: 2. The warranty costs paid during 2019 1. Prepare the journal entries for the preceding transactions. 3. The warranty revenue eamed in 2019 2. Show how Pereira would report the items on the December 31, 2019. balance sheet. 4. The warranty costs paid during 2020 PEREIRA CORPORATION 5. The warranty revenue eamed in 2020 Partial Balance Statement December 31. 2019 General Joumal Instructions Current Liabilities: PAGE1 GENERAL JOURNAL DATE ACCOUNT TITLE POST, REF DENIT CREDIT

Instructions * General Journal X Balance Sheet On August 1, 2019, Pereira Corporation has sold 1,500 Wiglows to Mendez Company at $420 each. Mendez also purchaseda 1- 1. Prepare the necessary joumal entries to record: 2. Show how Pereira would report the items on the December 31. 2019, balance sheet. year service-type warranty on all the Wiglows for $10 per unit. In 2019, Pereira incurred warranty costs of $9,000. Costs for 2020 were $3.000 1. The sale of Wiglows and service warranty on account on August 1, 2019 Balance Sheet Instruction Required: 2. The warranty costs paid during 2019 1. Prepare the journal entries for the preceding transactions. 3. The warranty revenue eamed in 2019 2. Show how Pereira would report the items on the December 31, 2019. balance sheet. 4. The warranty costs paid during 2020 PEREIRA CORPORATION 5. The warranty revenue eamed in 2020 Partial Balance Statement December 31. 2019 General Joumal Instructions Current Liabilities: PAGE1 GENERAL JOURNAL DATE ACCOUNT TITLE POST, REF DENIT CREDIT

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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