Chapter 11, Problem 11.1BPR

1.

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities.  Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.

To journalize: The liabilities transactions.

2. a

To determine

To journalize: The adjusting entry for product warranty.