When the company repurchase shares: (1) How the assets, liabilities and equity are affected? (2) How the cash flow statement is affected? During the year Piano Limited had paid $50,000 for warranty associated with sales. During the year, the company spent $1,000 cash on warranty repairs. Required: 1. Prepare all journal entries related to the warranty for the current year. 2. How will the liability related to the warranty be reported on the company's year-end balance sheet