Required Information [The following information applies to the questions displayed below.] Hitzu Company sold a copler (that costs $4,500) for $9,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 6% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copler requires on-site repairs that are completed the same day. The repairs cost $116 for materials taken from the parts Inventory. These are the only repairs required in Year 2 for this copler. 1. How much warranty expense does the company report for this copler in Year 1? 2. How much is the estimated warranty liability for this copler as of December 31 of Year 1? 3. How much is the estimated warranty liability for this copler as of December 31 of Year 2? 4. Prepare journal entries to record (a) the copler'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. Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Prepare journal entries to record (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. View transaction list Journal entry worksheet 2 < 1 3 4 Record the sale of a copier for $9,000 cash. Note: Enter debits before credits. Date August 16 General Journal Debit Credit >
Required Information [The following information applies to the questions displayed below.] Hitzu Company sold a copler (that costs $4,500) for $9,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 6% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copler requires on-site repairs that are completed the same day. The repairs cost $116 for materials taken from the parts Inventory. These are the only repairs required in Year 2 for this copler. 1. How much warranty expense does the company report for this copler in Year 1? 2. How much is the estimated warranty liability for this copler as of December 31 of Year 1? 3. How much is the estimated warranty liability for this copler as of December 31 of Year 2? 4. Prepare journal entries to record (a) the copler'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. Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Prepare journal entries to record (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. View transaction list Journal entry worksheet 2 < 1 3 4 Record the sale of a copier for $9,000 cash. Note: Enter debits before credits. Date August 16 General Journal Debit Credit >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please don't give image format
![Required Information
[The following information applies to the questions displayed below.]
Hitzu Company sold a copler (that costs $4,500) for $9,000 cash with a two-year parts warranty to a customer on August
16 of Year 1. Hitzu expects warranty costs to be 6% of dollar sales. It records warranty expense with an adjusting entry on
December 31. On January 5 of Year 2, the copler requires on-site repairs that are completed the same day. The repairs
cost $116 for materials taken from the parts Inventory. These are the only repairs required in Year 2 for this copler.
1. How much warranty expense does the company report for this copler in Year 1?
2. How much is the estimated warranty liability for this copler as of December 31 of Year 1?
3. How much is the estimated warranty liability for this copler as of December 31 of Year 2?
4. Prepare journal entries to record (a) the copler'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.
Complete this question by entering your answers in the tabs below.
Req 1 to 3
Req 4
Prepare journal entries to record (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.
View transaction list
Journal entry worksheet
2
<
1
3 4
Record the sale of a copier for $9,000 cash.
Note: Enter debits before credits.
Date
August 16
General Journal
Debit
Credit
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Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
Hitzu Company sold a copler (that costs $4,500) for $9,000 cash with a two-year parts warranty to a customer on August
16 of Year 1. Hitzu expects warranty costs to be 6% of dollar sales. It records warranty expense with an adjusting entry on
December 31. On January 5 of Year 2, the copler requires on-site repairs that are completed the same day. The repairs
cost $116 for materials taken from the parts Inventory. These are the only repairs required in Year 2 for this copler.
1. How much warranty expense does the company report for this copler in Year 1?
2. How much is the estimated warranty liability for this copler as of December 31 of Year 1?
3. How much is the estimated warranty liability for this copler as of December 31 of Year 2?
4. Prepare journal entries to record (a) the copler'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.
Complete this question by entering your answers in the tabs below.
Req 1 to 3
Req 4
Prepare journal entries to record (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.
View transaction list
Journal entry worksheet
2
<
1
3 4
Record the sale of a copier for $9,000 cash.
Note: Enter debits before credits.
Date
August 16
General Journal
Debit
Credit
>
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