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 $5,500) for $11,000 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 $147 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copier. Exercise 9-13 (Algo) Financial 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 August 16 August 16 December 31 January 5 Assets = = Liabilities + + Equity
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 $5,500) for $11,000 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 $147 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copier. Exercise 9-13 (Algo) Financial 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 August 16 August 16 December 31 January 5 Assets = = Liabilities + + Equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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 $5,500) for $11,000 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 $147 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copier.
Exercise 9-13 (Algo) Financial 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
August 16
August 16
December 31
January 5
Assets
Liabilities
+
+
+
+
Equity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67eeef0b-e6a8-43af-a851-bbb71fd1c3af%2F6c18456d-b2da-47f1-b734-836e93b50861%2Fpu1c955_processed.png&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 $5,500) for $11,000 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 $147 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copier.
Exercise 9-13 (Algo) Financial 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
August 16
August 16
December 31
January 5
Assets
Liabilities
+
+
+
+
Equity
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