I need help solving the following:

1. Van Equipment Company sells computers for $2,000 each and also gives each customer a 3-year warranty that requires the company to perform periodic services and to replace defective parts. During 2010, the company sold 500 computers. Based on past experience, the company has estimated the total 3-year warranty costs as $40 for parts and $80 for labor per computer. Assume sales all occur at December 31, 2010.

In 2011, Van incurred actual warranty costs relative to 2010 computer sales of $5,000 for parts of $12000 for labor. Instructions: Give the entries to reflect all of the above transactions (accrual methods) for 2010 and 2011.

2.S&G corporation issues $600,000 of 8% bonds on October 1,2004, due on October 1, 2009. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. S&G Corporation closes its books annually on December 31.

Instructions:

A) Complete the following amortization schedule for the dates indicated. Round all answers to the nearest dollar. Use effective interest method.

B) Prepare the adjusting entry for December 31, 2005. Use the effective interest method.