Financial Assets Homework-Solutions Mortgages Payable Bob Joe Inc., purchased a building and issued a $600,000, 5% mortgage on November 1, x1. Payments of $3,221 are made at the end of every month. 1. Record the JE for the issuance of the mortgage on November 1, x1. 2. Record the first monthly payment on November 30, x1. 3. What would the second month's JE to record the mortgage payment look like? 4. Please record the first two months transactions as they would appear in a T-Account for the Mortgages Payable account. Mortgages Payable Warranties JP Corporation manufactures and sells coffee makers. They recently introduced a new coffee maker that sells for $800 and has a 3-year warranty. Each coffee maker cost JP Corporation $350 to produce and expects only 2% of the coffee makers to be returned over the 3-year warranty period. 1. During x1, the first year that the coffee makers were sold, 2,500 were sold. Assume that the adjusting entry to record warranty liability is only made at year end. Show the December 31, x1 journal entry to record PJ's warranty liability 2. 2 During x2, 25 coffee makers were returned for repairs; 5 of which were simply replaced with new coffee makers and the remaining 20 were sent to Repairs-R-Us. Repairs-R-Us charged $250 per printer for the repairs. Show the JE to record the costs of the warranty repairs/replacements.

3. What would the second montit' if to record the morteare gament look the? 4. Plese recond the first two months tramactions as thry wobld adpear in a T Account for the Morteaces Payable accourt. Werranties IP Corporation manufachures and sells coffee makers. They recently introduced a new coffee maker that selh for $900 and has a 3 - pear warranty. Each collee maker cost JP Coeporation 5359 to produce and enpects enly 2N of the cethee maken to be returned over the 3 -ye at year end. Show the December 31. s1 journal entry to roani PFs warrarity liabilhy 2. Daring 2 , 2 cotlce makers wove returned for repairs; 5 of which were simply replaced with new coffee makers and the nemaining 20 were sent to Hepary-A-Us. Bepoirs-1-Us charged 3250 per printer for the repairs. Show the IE to record the costs of the warranty repsirs/heplacements