On January 1, 2023, Sunland Ltd. scd on account 1,100 units of its product for a total price of $549,000 with a warranty guarantee that the products were free of any defects. The products have a one-year assurance-type warranty and Sunland estimates that the cost will be $23,800. The cost of the units is $467,000. In addition, the company sold extended warranties related to 500 units for a one-year period beyond the one-year assurance period at a cost of $14,800. By the company's year-end, December 31, 2023, no warranty costs were incurred. By the company's year-end, December 31, 2024, $9.545 of warranty costs were incurred and paid in cash. Prepare the appropriate journal entries for 2023 and 2024. For the December 31, 2024 entry concerning the extended warranty, use the accounts Unearned Revenue and Warranty Revenue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
On January 1, 2023, Sunland Ltd. scd on account 1,100 units of its product for a total price of $549,000 with a warranty guarantee that the products were free of any defects. The products have a one-year assurance-type warranty and Sunland estimates that the cost will be $23,800. The cost of the units is $467,000. In addition, the company sold extended warranties related to 500 units for a one-year period beyond the one-year assurance period at a cost of $14,800. By the company's year-end, December 31, 2023, no warranty costs were incurred. By the company's year-end, December 31, 2024, $9.545 of warranty costs were incurred and paid in cash. Prepare the appropriate journal entries for 2023 and 2024. For the December 31, 2024 entry concerning the extended warranty, use the accounts Unearned Revenue and Warranty Revenue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
don't give answer in image format
Transcribed Image Text:On January 1, 2023, Sunland Ltd. soad on account 1,100 units of its product for a total price of $549,000 with a warranty guarantee
that the products were free of any defects. The products have a one-year assurance-type warranty and Sunland estimates that the
cost will be $23.800. The cost of the units is $467,000. In addition, the company sold extended warranties related to 500 units for a
one-year period beyond the one-year assurance period at a cost of $14,800. By the company's year-end, December 31, 2023, no
warranty costs were incurred. By the company's year-end, December 31, 2024, $9.545 of warranty costs were incurred and paid in
cash.
Prepare the appropriate journal entries for 2023 and 2024. For the December 31, 2024 entry concerning the extended warranty, use
the accounts Unearned Revenue and Warranty Revenue. (Credit account titles are automatically indented when the amount is entered. Do
not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit
entries. Record journal entries in the order presented in the problem.)
Account Titles and Explanation
Date
Debit
Credit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education