Question 5 (9 Marks) On December 31, 2017 Pink Inc sold production equipment to Blue Inc for $100,000. Pink included a 1-year assuraTIce warranty service with the sale of all its equipment. The customer received and paid for the equipment on December 31", 2017. The estimated price of the equipment was $95,000 and the warranty was $000 Required: 1. Prepare the journal entry (for Pink) to record this transaction on December 31, 2017 2. Repeat the requirements for (1) assuming that, in addition to the assurance warranty, Pink Inc sold an extended warranty service (service type warranty) for an additional two years (2019- 2020) for $1,600 7 Question 6 (7 Marks) For each of the following statements indicate by circling the letter, if the amount should be included in inventory: a) The cost of soap and paper towels for the washroom at a restaurant b) The cost of construction for a home being built for a specific customer to a builder c) The cost of a van being used as a courtesy vehicle to an automobile service d) The cost of land being held for development to a property developer The cost of a truck in the process of being manufactured by an automobile manufacturer e) f) The cost of cans of corn held on the shelves of grocery stores 8 Raw materials costs of leather to a manufacturer of leather furniture