Accrued product warranty Instructions Chart of Accounts Journal Instructions Fosters Manufacturing Co warrants its products for one year. The estimated product warranty s 4% of sales. Assume that sales were 5560,000 for January on February 7, a customer received warranty repairs requiring $250 of parts and $95 of labor Required: a. Joumalize the adjusting entry required at January 31, the end of the first month of the current aca year, to record the accrued product warranty. Hefer to the Chart of Accounts for exact wording of account sites b. Journalize the entry to record the warranty work provided in February. Mater to the Chart of Accounts for exact wording of account totes. Instructions Chart of Accounts Journal Chart of Accounts CHART OF ACCOUNTS Fosters Manufacturing Co General Ledger ASSETS REVENUE 410 Salos 610 Interest Revenue 110 Cash 111 Accounts Receivable 112. Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation Building 125 Office Equipment 120 Accumulated Depreciation Office Equipment EXPENSES 510 Cost of Goods Sold 520 Wages Expense 524 Depreciation Expense Building 525 Delivery Expense 526 Repairs Expense 529 Seling Expenses 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Supplies Expense 535 Payroll Tax Expense LIABILITIES 210 Accounts Payable Instructions Chart of Accounts Journal Chart of Accounts 210 Accounts Payable 213 Interest Payable 214 Notes Payable 215 Wages Payable 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Federal Income Tax Payable 219 Employees State Income Tax Payable 221 Retirement Savings Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability 228 Product Warranty Payable 535 Payroll Tax Expenso 536 Vacation Pay Expense 537 Pension Expense 538 Cash Short and Over 539 Product Warranty Expense 540 Miscellaneous Expense 710 Interest Expense EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary Accrued product warranty Instructions Chart of Accounts Journal Journal Scroll down to access page 2 of the journal 1. Joumalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. Peor to the Chart of Accounts for exact wording of account sted. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE POST REF DEBIT CREDIT ASSETS LNUTE EQUITY DESCRIPTION Adjusting Entries b. On February umalize the entry to record the warranty work provided in February Refer to the Chart of Accounts for exact wording of accounts PACE JOURNAL ACCOUNTING EQUATION signment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Book Show Me How Journal PAGE 1 JOURNAL ACCOUNTING EQUATION DATE POST REY DET CREDIT ASSETS LABUTIES EQUITY DESCRIPTION Adjusting Entries b.On February 7. oumaire the entry to record the warranty work provided in February. Motor to the Chart of Accounts for exact wording ol account tills PAGE 2 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POSTRE DET CADIT ASSETS LIABILITIES FOOTY 1
