E9-16A (Learning Objective 1: Accounting for warranty expense and the related liability) The accounting records of From the Earth Ceramics included the following balances at the end of the period: Provision for Warranty Repairs Warranty Expense Beg bal 3,000 From the Earth has determined that its warranty obligations at the end of the period are equal to $11,000. During 20X0, the business paid $4,000 to satisfy the warranty claims. I Requirements 1. Journalize From the Earth's warranty expense for the period and the company's cash payments to satisfy warranty claims. Explanations are not required. 2. Show what From the Earth will report on its income statement and balance sheet for this situation. 3. Which data item from Requirement 2 will affect From the Earth's current ratio? Will From the Earth's current ratio increase or decrease as a result of this item? E9-20A (Learning Objective 1: Accounting for income tax) At December 31, 20X0, Souza Real Estate reported a current liability for income tax payable of $180,000. During 20X1, Souza earned income of $1,200,000 before income tax. The company's income tax rate during 20X1 was 36%. Also during 20X1, Souza paid income taxes of $370,000. How much income tax payable did Souza Real Estate report on its balance sheet at statement? December 31, 20X1? How much income tax expense did Souza report on its 20X1 income