Bramble Enterprises Ltd. sells a specialty part that is used in widescreen televisions and provides the ultimate in screen clarity. To promote sales of its product, Bramble launched a program with some of its smaller customers. In exchange for making Bramble their exclusive supplier, Bramble guarantees these customers to their creditors so that Bramble will assume the customers long-term debt in the event of non-payment to the creditors. In addition to charging for parts, Bramble also charges a fee to customers who take the guarantee program. It bases the fee on the time frame that the guarantee covers, which is typically three years. In the current fiscal year, the fees collected amounted to $ 30,870 for the three-year coverage period. Six months before Brambles fiscal year end, one of its customers, Hutter Corp., began to experience financial difficulties and missed two months of mortgage payments. Hutters lender then called on Bramble to make the mortgage payments. At its fiscal year end on December 31, 2020, Bramble had recorded a receivable of $ 15,435 related to the payments made by Bramble on Hutters behalf. Hutter owes the lender an additional $ 30,870 at this point. The lender is thinking of putting a lien on Hutters assets that were pledged as collateral for the loans. However, the collateral involves rights to the development of new state-of-the-art three-dimensional television technology that is still unproven. Bramble follows ASPE. (a) Prepare all required journal entries and adjusting entries on Brambles books to recognize the transactions and events described above. (Hint: Use the accounts Service Revenue, Loss on Guarantee, and Liability for Guarantee.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Bramble Enterprises Ltd. sells a specialty part that is used in widescreen televisions and provides the ultimate in screen clarity. To promote sales of its product, Bramble launched a program with some of its smaller customers. In exchange for making Bramble their exclusive supplier, Bramble guarantees these customers to their creditors so that Bramble will assume the customers' long-term debt in the event of non-payment to the creditors. In addition to charging for parts, Bramble also charges a fee to customers who take the guarantee program. It bases the fee on the time frame that the guarantee covers, which is typically three years. In the current fiscal year, the fees collected amounted to $ 30,870 for the three-year coverage period. Six months before Bramble's fiscal year end, one of its customers. Hutter Corp., began to experience financial difficulties and missed two months of mortgage payments. Hutter's lender then called on Bramble to make the mortgage payments. At its fiscal year end on December 31, 2020, Bramble had recorded a receivable of $ 15.435 related to the payments made by Bramble on Hutter's behalf. Hutter owes the lender an additional $ 30,870 at this point. The lender is thinking of putting a lien on Hutter's assets that were pledged as collateral for the loans. However, the collateral involves rights to the development of new state-of-the-art three- dimensional television technology that is still unproven. Bramble follows ASPE. (a) Prepare all required journal entries and adjusting entries on Bramble's books to recognize the transactions and events described above. (Hint: Use the accounts Service Revenue. Loss on Guarantee and Liability for Guarantee.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Cash Service Revenue (To record cash received from customers) Accounts Payable Cash (To record payment made on behalf of Hutter) Accounts Receivable Service Revenue (To record revenue) Loss on Guarantee Liability for Guarantee (To record loss on guarantee)