BUSI 1043: INTRODUCTION TO FINANCIAL ACCOUNTING Case 2 - Marks 100 (5%) Student Name and ID Sec: Question 1 Green corporation started its business in 2019. It sold computers and electronics items for $196,800 in 2019. 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 2% and will be 3.5% in the second year. Green Corporation spent $3,120 on warranty repairs during 2019. a. Prepare all journal entries related to the warranty for 2019. b. How will the warranty liability be reported on the balance sheet on Dec 31, 2019? Date Account Debit Credit Question 2 Green Corporation is authorized to issue 900,000 common shares. The company started its business in 2014 and initially issued 248,000 common shares at $8/share. During 2016 Green corporation issued additional common shares of 165,000 at a price of $10/share. From 2014 till 2019 Green Corporation carned a total net income of $685,000. Over these 6 years they paid out a total of $75,000 cash dividend. In 2019 Green Corporation distributed 8% stock dividend based on the market price of the company share at $12. Green Corporation's balance sheet on Dec 31, 2019 show's total assets of $5,985,000 and liabilities of $2,530,680. Calculate the shareholders equity for Green corporation by showing complete calculation of common shares/share capital and the retained eamings for Dec 31, 2019