YellowCard Company manufactures accessories for iPods. It had the following selected transactions during 2017. (Note: For any part of this problem requiring an interest or discount rate, use 9%.)

1. YellowCard provides a 2-year warranty on its docking stations, which it began selling in 2017. During 2017, YellowCard spent $5,160 servicing warranty claims. At year-end, YellowCard estimates that an additional $32,730 will be spent in the future to service warranties related to 2017 sales.

2. YellowCard has a $197,600 loan outstanding from First Trust Corp. The loan is set to mature on February 28, 2018. For several years, First Trust has agreed to extend the loan, as long as YellowCard makes all its quarterly interest payments (interest is due on the last days of each February, May, August, and November) and maintains an acid-test ratio (also called quick ratio) of at least 1.25. First Trust has provided YellowCard a commitment letter indicating that First Trust will extend the loan another 12 months, providing YellowCard makes the interest payment due on March 31.

3. During 2016, YellowCard constructed a small manufacturing facility specifically to manufacture one particular accessory. YellowCard paid the construction contractor $4,755,000 cash (which was the total contract price) and placed the facility into service on January 1, 2017. Because of technological change, YellowCard anticipates that the manufacturing facility will be useful for no more than 10 years. The local government where the facility is located required that, at the end of the 10-year period, YellowCard remediate the facility so that it can be used as a community center. YellowCard estimates the cost of remediation to be $373,300.

Question 1 -125 View Policies Current Attempt in Progress YellowCard Company manufactures accessories for iPods. It had the following selected transactions during 2012.Node For any part of this probiem requining an interest or discountrate, use ) 1. YellowCard provides a 2-year warranty on its docking stations, which it began selling in 2017. During 2017, Velowcard spent $3.10 ervicing warranty daims At vearend YelowCandetinates that an addtioral 532.730 wil be spent in the future to service warranties related to 2017 sales. 2. YellowCard has a $197.600 loan outstanding trom First Trust Corp. The loan is set to mature on February 28, 2018 For several years. First Trust has agreed to extend the loan as long as Yellacard makes al its arterv interest payments (interest is due on the last days of each February. May, August, and November) and maintains an acid test ratio (aho calel'qukk ratie ofaleast 125. First Trust has provided vellowCarda comniosent letter indicating that First Trust will extend the loan another 12 months. providing YellowCard makes the interest payment due on March 31 3. During 2016, YellowCard constructed a small manufacturing tacility speciically to manufacture one particular accessory Vellowcardpaid the construction contractor 54.755.000 cashlaidwa the total contract oricel and placed the facility into service on January 1. 2017. Because of technological change, YellowCard anticipates that the matfacturing facility will be usefultor no ore than 10 years The local governenent wheethetacltyslecated required that, at the end of the 10-year period, YellowCard remediate the faclity so that it can be used as a community center. YellowCardestintes the cost of remediation to be $373300 Prepare all 2017 journal entries relating to YellowCard's warranties (Credit account titles are automaticoly indented when the emount is entered Do net ndent manualy Date Account Titles and Explanation Debit Credit Rolland Send to Gradebook Pre uestion 1 -125 w Policies rent Attempt in Progress ellowCard Company manufactures accessories for iPods. It had the following selected transactions during 2017. (Note For any part of this problemrequiring an interest or discount rate use 9) YellowCard provides a 2-year warranty on its docking stations, which it began selling in 2017. During 2017. YellowCard spent $3.160 servicing warranty claim. At year-end. YellowCard estinates that an additional $32.730 will be spent in the future to service warranties related to 2017 sales YellowCard has a $197.600 loan outstanding from First Trust Corp. The loan is set to mature on February 28, 2018 For several years. First Trust has agreed to extend the loan, as longa YellowCard makes allits quarterly interest payments (interest is due on the last days of each February, May, August and November) and maintains an acid-test ratio (also called"quick ratio) of at least 1.25. First Trust has provided YelowCard a commitment letter" indicating that First Trust will extend the loan another 12 months, providing YellowCard makes the interest payment dae on March 31 During 2016, YellowCard constructed a small manufacturing tacility specifically to manufacture oneparticular ccessory YelowCard paid the construction contractor $4755,000 cashinhich was the total contract pricel and placed the facility into service on January 1. 2017. Because of technological change. YellowCard anticipates that the manfacturing facility will be useful for no more than 10 years. The local government where the facility is lacated required that, at the end of the 10-year period. YellowCard remediate the facility so that it can be used as a commuritvoenter YelowCard estimates the cost of remediation to be $373300 Prepare all 2017 journal entries relating to YellowCard's warranties (Credit account tidles are automatically indented when the amount ismtered De not indent manuallyd Debit Credit Date Account Titles and Explanation During 2017