You have recently been hired as controller of Benjamin Enterprises, a manufacturing company. In addition to its manufacturing facility, the company operates an exploration site where it has been successful in discovering oil that is used in its manufacturing division. The company also has a chain of stores that sell the manufacturing products. The previous controller left suddenly due to illness. Your first task is to prepare the liability section of the financial statements for the year ended December 31, 2022. Below are selected issues that you are working to resolve. Benjamin Enterprises reports under international financial reporting standards (IFRS).

Please show all calculations.

As part of its operations, Benjamin sells equipment. The equipment includes a warranty. The company sold 400 pieces of equipment for an average sales price of $600. Included in the sales price are warranties that are estimated to be worth $150 for each piece of equipment. The warranty is for two years from date of purchase. The company expects total actual warranty costs to be $57,000. Actual costs incurred were $29,000 in year one. Warranty revenue is recognized based on costs incurred as a percentage of total expected costs.

Show all journal entries for the sales and the warranty using the revenue approach. (Round to the nearest dollar)

Prepare the journal entries for December 31, 2022.