1. Ajam Inc. shows the following selected adjusted account balances at March 31, 2019: Accounts Payable Accumulated Depreciation - Machinery $ 58,000 Wages Payable 102,000 69,000 Income Taxes Payable 92,000 Note Payable, due May 15, 2021 108,000 Note Payable, due November 30, 2019 64,000 Mortgage Payable 320,000 Accounts Receivable 71,000 Note: $240,000 of the mortgage payable balance is due one year beyond the balance sheet date; the remainder will be paid within the next 12 months. Required: Prepare the liability section of Ajam's March 31, 2019 balance sheet. 2. On January 23, 2019, Zenox Company sold $105,000 of furniture on account that had a cost of $82,000. All of Zenox's sales are covered by an unconditional 24-month replacement warranty. Historical data indicates that warranty costs average 2% of the cost of sales. On January 29, 2019, Zenox replaced furniture with a cost of $2,000 that was covered by warranty. Required: a. Prepare the journal entry to record the estimated warranty liability for January. b. Prepare the entry to record the warranty expense incurred in January. c. Assuming the Estimated Warranty Liability account had a credit balance of $740 on January 1, 2019, calculate the balance at January 31, 2019 after the entries above were posted.