Echo Beach has the following transactions.

1. On 1 June 2022, Echo Beach issued a 3 month, 5%, $12000 note to Zoom Inc for the purchase of a delivery van that cost $25000, the remainder was paid in cash.

2. Echo Beach Ltd offers a 12 month warranty on the sale of its IT equipment. On 1/7/2021 the warranty provision account had a credit balance of $38,000. During the year ending 30 June 2022 Echo Beach incurred $18,000 in warranty costs, of which $8,000 was in the form of inventory and $10,000 was for labour costs. At 30 June 2022, Echo Beach estimates its liability for unexpired warranty contracts as $46,000.

Required:

Prepare the journal entries to:

a) Record the journal entries for the note including any interest for the period ending 30 June 2022. ( 2.5 marks)

b) record warranty claims during the period and ( 1.5 marks)

c) end-of-period adjustments to the warranty provision account. ( 1 mark)