P13.2 (LO 1,3) Excel (Liability Entries and Adjustments) Listed below are selected transactions of Schultz Department Store for the current year ending December 31. 1. On December 5 , the store received $500 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. 2. During December, cash sales totaled $798,000, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. 3. On December 10, the store purchased for cash three delivery trucks for $120,000. The trucks were purchased in a state that applies a 5% sales tax. 4. The store determined it will cost $100,000 to restore the area (considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years. Schultz estimates the fair value of the obligation at December 31 is $84,000. Instructions Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal entries relative to the transactions that would be required to present fair financial statements at December 31 . Date each entry. For simplicity, assume that adjusting entries are recorded only once a year on December 31 . P13.7 (Lo 3) (Warranties) Alvarado Company sells a machine for $7,400 with a 12-month warranty agreement that requires the company to replace all defective parts and to provide the repair Labor at no cost to the customers. With sales being made evenly throughout the year, the company sells 600 machines in 2020 (warranty expense is incurred half in 2020 and half in 2021 ). As a result of product testing, the company estimates that the total warranty cost is $390 per machine ($170 parts and $220 Labor). Problems Instructions Assuming that actual warnanty costs are incurred exactly as estimated, what journal entries would be made relative to the following facts? a. Sale of machinery and warranty expense incurred in 2020. b. Warranty acerual on December 31,2020 . c. Warranty costs incurred in 2021 . d. What amount, if any, is disclosed in the balance sheet as a liability for future warranty costs as of December 11, 2020