Pina Music Emporum carries a wide variety of musical instruments, sound reproduction equipment , recorded music, and sheet music. Pina uses two sales promotion techniques- warranties and premiums-to attract customer.

Musical instruments and sound equipment are sold with a one-year warranty for replacement of parts and labor. The estimated warrantiy cost, based on past experience, is 2 % of sales.

The premium is offered on the recorded and sheet music. Customers receive a coupon for each dollar spent on recorded music or sheet music. Customers may exchange 200 coupons and $ 20 for an MP3 player. Pina pays $31 for each player and estimates that 50% of the coupons given to customers will be redeemed.

Pina's total sales for 2017 were $ 7,152,000-$6,152,000 from musical instruments and sound reproduction equipment and $1,000,000 from recorded music and sheet music. Replacement parts and labor for warranty work totaled $ 154,100 during 2017. A Total of 6,470 player used in the premium program were purchased during the

year and there ere 1,108,000 coupons redeemed in 2017.

The balances in the accounts related to warranties and premiums on January 1 2017 was as shown, were as shown below.

inventory of premiums $39,720

Premium Liability 42,510

Warranty liability 125,600

Pina Music Emporium is preparing its financial statements for the year ended December 31, 2017, Determine the amounts that will be shown on the 2017 financial statements for the following.

a) Warranty Expense $______________________________

b)Warranty Liability $_______________________________-

C) Premium Expenses $_____________________________

D) Inventory of Premiums $__________________________

E) Premium Liability $_______________________