1. A company that offers a parts and labour warranty had a $50,000 balance in the Warranty Liability account at the beginning of 2017. During that year they honoured $55,000 worth of warranty contracts. The entry to recognize the actual warranty costs incurred would include a

• A :

  debit to Warranty Expense, $5,000.

• B :

  debit to Warranty Liability, $5,000.

• C :

  debit to Warranty Expense, $55,000.

• D :

  debit to Warranty Liability, $55,000.

2. Which of the following liability accounts includes amounts contributed by only the employees?

• A :

  Income Tax Payable

• B :

  Workers Compensation Payable

• C :

  Vacation Payable

• D :

  EI Payable