Intermediate Accounting

Question 1: [8 marks] Use the following information to answer the questions: Essa Murad company sold 400 dishwashers during 2019 at $1,500 each. During 2019, the company spent $4,000 servicing the 4-year warranties (2019,2020,2021,2022) that is an integral part of the sale. the warranty cost will average $85 per dishwasher. in compliance with warranties the costs for annual maintenance were ($4,000 in 2019, $8,000 in 2020, $18,000 in 2021, $22,000 in 2022.) Instructions + Answer Question What is the effect of previous transactions on 2019 income statement? What is the total liabilities to be reported at 31/12/2019 statement of financial position? Dr. Write the estimated warranty(provision) entry at 31/12/2019. Cr. What is the effect of transactions related to warranties on 2022 net income