Answer:
A.
Dr Cash $891,540
Dr Warranty Expense $127,254
Cr Sales Revenue $891,540
Cr Warranty Liability $127,254
B. Current Liabilities
Warranty Liability $63,627
Long-term Debt
Warranty Liability $63,627
C. Dr Warranty Liability 61,300
Cr Inventory 21,400
Cr Salaries and Wages Payable 39,900
Explanation:
A. Preparation of the journal to Record any necessary journal entries in 2017.
Dr Cash $891,540
[ (381 × $2,340) = $891,540]
Dr Warranty Expense $127,254
Cr Sales Revenue $891,540
Cr Warranty Liability $127,254
(381 *[$142+ $192])
B. Calculation for What liability relative to these transactions would appear on the December 31, 2017,
Riverbed Corporation
Balance Sheet (Partial)
December 31, 2017
Current Liabilities
Warranty Liability $63,627
($127,254/2)
Long-term Debt
Warranty Liability $63,627
C. Preparation of the journal entry Record any necessary journal entries in 2018
Dr Warranty Liability 61,300
($21,400+$39,900)
Cr Inventory 21,400
Cr Salaries and Wages Payable 39,900
