Part 1 Okanagan Refrigeration manufactures and markets products throughout Canada It was disclosed in notes to the companys financial statements that estimated warranty costs are accrued at the time products are sold Assume that in 2014 warranty costs are estimated at $315,000 and that the related ...

Part 1 In 2014 expenses are increased by 315000 which causes net income to decrease by 315000 on the ...

Part 1: Okanagan Refrigeration manufactures and markets products throughout Canada. It was disclosed in notes to the

Question:

Part 1:
Okanagan Refrigeration manufactures and markets products throughout Canada. It was disclosed in notes to the company’s that estimated warranty costs are accrued at the time products are sold. Assume that in 2014 warranty costs are estimated at $315,000 and that the related warranty work was actually paid for during 2015.

Required
Explain how are affected due to warranties in 2014 and 2015.

Part 2:
Assume that Dobush Enterprises collected $1,950,000 during 2014 for magazines that will be delivered in future years. During 2015, Dobush delivered magazines based on these subscriptions amounting to $1,835,000.

Required
Explain how are affected in 2014 and 2015 by these subscriptions.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...