1. Solvency Limited purchased equipment costing $150,000 on October 1, 2018, by paying 10% down payment in cash and signing an 8%, 9-month note payable for the balance amount. Interest and principle will be paid back together at the end of the note. Prepare journal entries to record: a. the purchase of the equipment, b. the adjusting journal entry to record the accrued interest on December 31, c. and the payment of the note at maturity along with the interest. 2. Silver corporation started its business in 2018. It sold electronics items for $154,500 in 2018. The company has provided a 2- year limited warranty for all sales. The company's estimate is that warranty costs for the first year will be 1% and will be 2% in the second year. Silver Corporation spent $1,100 on warranty repairs during 2018. a. Prepare all journal entries related to the warranty for 2018. b. How will the warranty liability be reported on the balance sheet on Dec 31, 2018