Question 5 Sandy Ltd has the following equity accounts as at July 1, 2015: Share Capital (100,000 shares) $500,000 Retained Earnings 48,000 During the year ended June 30, 2017, a final dividend of $0.15 per share was declared. The final dividend is paid on August 1, 2017. Required: Prepare the necessary journal entries for the above transactions (narrations are not required) Page 7 of a Question 5 (con't) (b) John Ltd's financial year ends on June 30. On January 1, 2017, John Ltd issues a $100,000, 12%, 6-month note to Hong Leong Bank to borrow $100,000 from the bank. The note matures on July 1, 2017. Required: 0 Prepare the journal entry to record the issuance of the above note on January 1, 2017. Ignore narrations. Prepare the necessary adjusting journal entries on June 30, 2017. Show your workings and ignore narrations. (iii) Prepare the journal entry to record the settlement of the note inclusive of interest expense at maturity on July 1, 2017. Ignore narrations. (c) Jimmy Ltd offers a 12-month warranty to its customers with the electrical appliances that it sells. Warranty liabilities are estimated at 10% of sales for the previous 12 months. On July 1, 2016, the balance of the Warranty Provision account was $20,000. During the year ended June 30, 2017, warranty repair cost is $25,000, of which $18,000 was for inventory parts and $7,000 was for wages. Revenue from the sale of electrical appliances in the current financial year is $180,000. There have been no changes in suppliers, product quality or prices. Required: 0 Construct the Warranty Provision account Do you think the warranty provision of $20,000 as at July 1, 2016 is adequate to cover warranty claims made during the financial year ended June 30, 2017? Give a reason for your