SOLUTION Prob 13-6

SOLUTION Prob 13-6 - ............................... 8,100...

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PROBLEM 13-6 (a) Cash. ....................................................................... 294,300 Sales (300 X $900) . ....................................... 270,000 Unearned Warranty Revenue (270 X $90) . ..... 24,300 (b) Current Liabilities: Unearned Warranty Revenue ($24,300/3) . ... $ 8,100 (Note: Warranty costs assumed to be incurred equally over the three- year period) Long-term Liabilities: Unearned Warranty Revenue ($24,300 X 2/3) . ........................................... $16,200 (c) Unearned Warranty Revenue .
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Unformatted text preview: ............................... 8,100 Warranty Revenue . ....................................... 8,100 Warranty Expense . ................................................ 6,000 Parts Inventory . ............................................ 2,000 Accrued Payroll . ........................................... 4,000 (d) Current Liabilities: Unearned Warranty Revenue . ...................... $ 8,100 Long-term Liabilities: Unearned Warranty Revenue . ...................... $ 8,100...
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