Hitzu Company sold a copier (that costs $7,500) for $15,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 5% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $105 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copier. 1. How much warranty expense does the company report for this copier in Year 1? 2. How much is the estimated warranty liability for this copier as of December 31 of Year 1? 3. How much is the estimated warranty liability for this copier as of December 31 of Year 2? 4. Prepare journal entries to record (a) the copier's sale; (b) the adjustment to recognize the warranty expense on December 31 of Year 1; and (c) the repairs that occur on January 5 of Year 2. Use the following information from separate companies a through d Net Income (Loss) $ 178,000 172, 600 151,300 181, 100 a. b. C. d. Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due? Company Interest Expense $ 85,440 43, 150 Complete this question by entering your answers in the tabs below. Times Interest Interest Earned Ratio Coverage Compute times interest earned. a 52,955 7,244 b C d Income Taxes $ 44,500 62, 136 63,546 86,928 Times Interest Earned Ratio Choose Numerator: I Choose Denominator: 1 1 1 1 1 < Times Interest Earned Ratio = = = = = = Ratio 0 times 0 times 0 times 0 times Interest Coverage >