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Waterway Company sells televisions at an average price of $ 934 and also offers to each customer a separate 3-year warranty contract for $87 that requires the company to perform periodic services and to replace defective parts. During 2020, the company sold 294 televisions and 214 warranty contracts for cash. It estimates the 3-year warranty costs as $21 for parts and $41 for labor, and accounts for warranties separately. Assume sales occurred on December 31,2020, and straight-line recognition of warranty revenues occurs. Part 1 Record any necessary journal entries in 2020. (f no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account tities are automatically indented when amount is entered. Do not indent manualy) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Attempts: 0 of 5 used submit Awer Save for Later Part 2 What liability relative to these transactions would appear on the December 31, 2020, balance sheet and how would it be classified? Waterway Company Balance Sheet (Partial) eTextbook and Media List of Accounts Attempts: O of 5 used Semit Ancwer Save for Later Part 3 In 2021, Waterway Company incurred actual costs relative to 2020 television warranty sales of $1,870 for parts and $4,190 for labor. Record any necessary journal entries in 2021 relative to 2020 television warranties. Use "Inventory account to record the warranty expense. (f no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit (To record the warranty revenue eamed.) (To record the warranty expense.) eTextbook and Media List of Accounts

Waterway Company sells televisions at an average price of $ 934 and also offers to each customer a separate 3-year warranty contract for $87 that requires the company to perform periodic services and to replace defective parts. During 2020, the company sold 294 televisions and 214 warranty contracts for cash. It estimates the 3-year warranty costs as $21 for parts and $41 for labor, and accounts for warranties separately. Assume sales occurred on December 31,2020, and straight-line recognition of warranty revenues occurs. Part 1 Record any necessary journal entries in 2020. (f no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account tities are automatically indented when amount is entered. Do not indent manualy) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Attempts: 0 of 5 used submit Awer Save for Later Part 2 What liability relative to these transactions would appear on the December 31, 2020, balance sheet and how would it be classified? Waterway Company Balance Sheet (Partial) eTextbook and Media List of Accounts Attempts: O of 5 used Semit Ancwer Save for Later Part 3 In 2021, Waterway Company incurred actual costs relative to 2020 television warranty sales of $1,870 for parts and $4,190 for labor. Record any necessary journal entries in 2021 relative to 2020 television warranties. Use "Inventory account to record the warranty expense. (f no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit (To record the warranty revenue eamed.) (To record the warranty expense.) eTextbook and Media List of Accounts

FINANCIAL ACCOUNTING
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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Waterway Company sells televisions at an average price of $ 934 and also offers to each customer a separate 3-year warranty contract for $ 87 that requires the company to perform periodic services and to replace defective parts. During 2020, the company sold 294 televisions and 214 warranty contracts for cash. It estimates the 3-year warranty costs as $21 for pa and accounts for warranties separately. Assume sales occurred on December 31.2020, and parts and $41 for labor, straight-line recognition of warranty revenues ocurs. Part 1 Record any necessary journal entries in 2020. (f no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account tities are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Answer Part 2 What liability relative to these transactions would appear on the December 31, 2020, balance sheet and how would it be classified? Waterway Company Balance Sheet (Partial) eTextbook and Media List of Accounts Attempts: 0 of 5 used Submit Amwer Save for Later Part 3 In 2021, Waterway Company incurred actual costs relative to 2020 television warranty sales of $ 1,870 for parts and $ 4,190 for labor. Record any necessary journal entries in 2021 relative to 2020 television warranties. Use "Inventory" account to record the warranty expense. (f no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit (To record the warranty revenue eamed.) (To record the warranty expense.) eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Arswer Part 4 What amounts relative to the 2020 television warranties would appear on the December 31, 2021, balance sheet and how would they be classified? Waterway Company Balance Sheet (Partial) eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Aower
Transcribed Image Text:Waterway Company sells televisions at an average price of $ 934 and also offers to each customer a separate 3-year warranty contract for $ 87 that requires the company to perform periodic services and to replace defective parts. During 2020, the company sold 294 televisions and 214 warranty contracts for cash. It estimates the 3-year warranty costs as $21 for pa and accounts for warranties separately. Assume sales occurred on December 31.2020, and parts and $41 for labor, straight-line recognition of warranty revenues ocurs. Part 1 Record any necessary journal entries in 2020. (f no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account tities are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Answer Part 2 What liability relative to these transactions would appear on the December 31, 2020, balance sheet and how would it be classified? Waterway Company Balance Sheet (Partial) eTextbook and Media List of Accounts Attempts: 0 of 5 used Submit Amwer Save for Later Part 3 In 2021, Waterway Company incurred actual costs relative to 2020 television warranty sales of $ 1,870 for parts and $ 4,190 for labor. Record any necessary journal entries in 2021 relative to 2020 television warranties. Use "Inventory" account to record the warranty expense. (f no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit (To record the warranty revenue eamed.) (To record the warranty expense.) eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Arswer Part 4 What amounts relative to the 2020 television warranties would appear on the December 31, 2021, balance sheet and how would they be classified? Waterway Company Balance Sheet (Partial) eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Aower
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