Shamrock Inc sells portable computer equipment with a two year warranty contract that requires the corporation to replace defective parts and provide the necessary repair labour During 2020, the corporation sells for cash 434 computers at a unit price of $2,250 Ignore any cost of goods sold Based on experience, the two year warranty costs are estimated to be $162 for parts and $188 for labour per unit (For simplicity, assume that all sales occurred on December 31, 2020 ) The warranty is not sold separately from the equipment, and no portion of the sales price is allocated to warranty sales Shamrock follows ASPE Record the 2020 journal entry, assuming the cash basis is used to account for the warranties (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS Record the 2020 journal entries, assuming the accrual basis assurance type approach is used to account for the warranties (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) Account Titles and Explanation Debit Credit (To record sales) (To accrue outstanding warranty) SHOW LIST OF ACCOUNTS What liability relative to these transactions would appear on the December 31, 2020 balance sheet How would it be classified if the accrual basis assurance type approach is used Shamrock Inc Balance Sheet (Partial) For the Month Ended December 31, 2020As at December 31, 2020For the Quarter Ended December 31, 2020 Current AssetsShort Term LiabilitiesShareholders' EquityProperty, Plant and EquipmentLong Term LiabilitiesTotal AssetsTotal Property, Plant and EquipmentShort Term InvestmentsIntangible AssetsTotal Current AssetsCurrent LiabilitiesTotal Current LiabilitiesTotal Intangible AssetsTotal Liabilities and Shareholders' EquityTotal Shareholders' EquityLong Term Investments $ Total AssetsTotal Current AssetsTotal Property, Plant and EquipmentProperty, Plant and EquipmentShort Term InvestmentsShort Term LiabilitiesShareholders' EquityTotal Current LiabilitiesTotal Intangible AssetsLong Term InvestmentsTotal Liabilities and Shareholders' EquityTotal Shareholders' EquityCurrent AssetsCurrent LiabilitiesLong Term LiabilitiesIntangible Assets $ SHOW LIST OF ACCOUNTS Assume that in 2021 the actual warranty costs incurred by Shamrock were $22,388 for parts and $38,417 for labour Record the necessary entry in 2021, applying the cash basis (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS Assume that in 2021 the actual warranty costs incurred by Shamrock were $22,388 for parts and $38,417 for labour Record the necessary entries in 2021, applying the accrual basis assurance type approach (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) Account Titles and Explanation Debit Credit

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Shamrock Inc. sells portable computer equipment with a two-year warranty contract that requires the corporation to replace defective parts and provide the necessary repair labour.

Shamrock Inc. sells portable computer equipment with a two-year warranty contract that requires the corporation to replace defective parts and provide the necessary repair labour. During 2020, the corporation sells for cash 434 computers at a unit price of $2,250. Ignore any cost of goods sold. Based on experience, the two-year warranty costs are estimated to be $162 for parts and $188 for labour per unit. (For simplicity, assume that all sales occurred on December 31, 2020.) The warranty is not sold separately from the equipment, and no portion of the sales price is allocated to warranty sales. Shamrock follows ASPE.

Record the 2020 journal entry, assuming the cash basis is used to account for the warranties. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

SHOW LIST OF ACCOUNTS

Record the 2020 journal entries, assuming the accrual basis assurance-type approach is used to account for the warranties. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit


(To record sales)


(To accrue outstanding warranty)

SHOW LIST OF ACCOUNTS

What liability relative to these transactions would appear on the December 31, 2020 balance sheet? How would it be classified if the accrual basis assurance-type approach is used?

Shamrock Inc. Balance Sheet (Partial) For the Month Ended December 31, 2020As at December 31, 2020For the Quarter Ended December 31, 2020
Current AssetsShort-Term LiabilitiesShareholders' EquityProperty, Plant and EquipmentLong-Term LiabilitiesTotal AssetsTotal Property, Plant and EquipmentShort-Term InvestmentsIntangible AssetsTotal Current AssetsCurrent LiabilitiesTotal Current LiabilitiesTotal Intangible AssetsTotal Liabilities and Shareholders' EquityTotal Shareholders' EquityLong-Term Investments
			$

Total AssetsTotal Current AssetsTotal Property, Plant and EquipmentProperty, Plant and EquipmentShort-Term InvestmentsShort-Term LiabilitiesShareholders' EquityTotal Current LiabilitiesTotal Intangible AssetsLong-Term InvestmentsTotal Liabilities and Shareholders' EquityTotal Shareholders' EquityCurrent AssetsCurrent LiabilitiesLong-Term LiabilitiesIntangible Assets
			$

SHOW LIST OF ACCOUNTS

Assume that in 2021 the actual warranty costs incurred by Shamrock were $22,388 for parts and $38,417 for labour. Record the necessary entry in 2021, applying the cash basis. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

SHOW LIST OF ACCOUNTS

Assume that in 2021 the actual warranty costs incurred by Shamrock were $22,388 for parts and $38,417 for labour. Record the necessary entries in 2021, applying the accrual basis assurance-type approach. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)