Date Transactions Dr. Cr.

1-Jan-18 Purchases / Inventory 18,000

GST Recoverable 900
Cash 18,900 18,900

12-Jan-18 Cash 25,200 25,200

Sales 24,000
GST Payable 1,200

31-Jan-18 GST Payable 1,200

Cash 300
GST Recoverable 900
Transaction Assets Liabilities SHE NI Item 2
1 Increase Increase NE NE Inventory 80,000
2 NE NE NE NE AP
3 NE Increase Decrease Decrease
4 Increase Increase NE NE AP 80,000
5 NE Increase Decrease Decrease Notes Payable
6 Increase Increase Increase Increase
7 Decrease Increase Decrease Decrease Item 5
8 NE Increase Decrease Decrease Interest Expense 4,000
9 NE Increase Decrease Decrease Interest Payable
10 NE NE NE NE
11 NE Increase Decrease Decrease Item 6
12 NE Increase Decrease Decrease Cash 81,900
13 NE Increase Decrease Decrease Sales
14 Decrease Decrease NE NE GST Payable
15 Increase Increase Increase Increase
16 Decrease NE Decrease Decrease Item 7
17 NE Decrease Increase Increase Salaries Expense 35,000
18 NE Increase Decrease Decrease Cash
19 Increase Increase NE NE EI, CPP, Income Tax Payable
20 Increase Decrease Increase Increase
Item 8
Payroll Tax Expenses 10,000
EI, CPP, Income Tax Payable

Item 9
Salaries Expense 5,000
Vacation Wages Payable

Item 10
No Entry.
There's no financial impact as of the current p
This Contract has to be disclosed in the financ

Item 13
Warranty Expense 30,000
Warranty Liability

Item 14
Warrantry Liability 10,000
Cash

Item 15
Cash 30,000
Sales
Unearned Warranty Income
Item 16
Expenses 1,500
Cash

Item 17
Unearned Warranty I 2,000
Warranty Income

Item 19
Cash 20,000
Unearned Revenue

Item 20
Cash 30,000
Unearned Revenue 20,000
Revenue
 80,000

80,000

4,000

78,000
3,900

25,000
10,000

10,000

5,000

act as of the current period because only a contract has been signed and no construction began yet
disclosed in the financial statements because it involves a major future undertaking

30,000

10,000

25,000
5,000
 1,500

2,000

20,000

50,000
Total Debt 1,200,000

A) ASPE
Current Liabilities
Notes Payable 250,000

Long-term Liabilities
Notes Payable 950,000

B) IFRS
Current Liabilities
Notes Payable 1,200,000
A) Journal Entries - Expense Approach Assurance Type; Accrual Basis
Cash/AR 600,000
Sales 600,000

Warranty Expense 45,000

Warranty Liability 45,000

Warranty Liability 17,000

Cash 17,000

Balance Sheet
Current Liabilities
Warranty Liability @ year end 28,000

B) Journal Entries - Cash Basis

Cash 600,000
Sales 600,000

Warranty Expense -
Warranty Liability -

Warranty Expense 17,000

Cash 17,000

Warranty Liability @ year end -

A) Warranty Expense for 2020

Sales for 2020 1,036,000

Warranty Rate 9%
Estimated Warranty Expense 93,240 in Income Statement

2020 2019
Warranty Expense 93,240 96,300
Warranty Liability 93,240 96,300
To recognize warranty expense

Warranty liability 83,000 47,200

Cash 83,000 47,200
To record warranty expenditures

Warranty Liability for 2020

From 2018 Sales 72,900
From 2019 Sales 96,300
From 2020 Sales 93,240
Unadjusted Warranty Liability 262,440 Unadjusted Warranty Liability (al
Total Warranty Expenditures (2018-2020) 146,700 Actual Spending
Warranty Liability, Balance at 12-31-2020 115,740 in Balance Sheet

Warranty Liability 83,000

Cash 83,000
Actual spending for warranties
 2018 2019 2020
Sales 810,000 1,070,000 1,036,000
Warranty Exp 72,900 96,300 93,240

"Warranty Exp 16,500 47,200 83,000

2018
72,900
72,900

16,500
16,500 16,200
24,300 21,400

Unadjusted Warranty Liability (all estimates, not yet adjusted for actual spending) should be equal to Warranty Expenses for al
Actual Spending

Warranty Liability
2018 expenditu 16,500 72,900 2018 sales
56,400 Bal., 12-31-18
2019 expenditu 47,200 96,300 2019 sales
105,500 Bal., 12-31-19
2020 expenditu 83,000 93,240 2020 sales
115,740 Bal., 12-31-20
to Warranty Expenses for all years
A) Assurance type
AR 3,000,000
Sales 3,000,000

Warranty Expense 30,000 Warranty Expense

Cash 30,000 Warranty Liabilitiy

Warranty Expense 90,000 Warranty Liability

Warranty Liability 90,000 Cash
120000
120000

30000
30000
FV 800,000
N 40
PMT 48,000
PV (784,000) Positive - inflow (amount we receive because of the loan
6.1352% 6.1352%

Date Cash Interest Principal Balance

30-Jun-13 - - - (784,000.00) 1
30-Jun-14 48,000.00 (48,099.92) (99.92) (784,099.92) 1
30-Jun-15 48,000.00 (48,106.06) (106.06) (784,205.98) 2
30-Jun-16 48,000.00 (48,112.56) (112.56) (784,318.54) 3
30-Jun-17 48,000.00 (48,119.47) (119.47) (784,438.01) 4
30-Jun-18 48,000.00 (48,126.80) (126.80) (784,564.81) 5
30-Jun-19 48,000.00 (48,134.58) (134.58) (784,699.38) 6
30-Jun-20 48,000.00 (48,142.83) (142.83) (784,842.22) 7
30-Jun-21 48,000.00 (48,151.60) (151.60) (784,993.81) 8
30-Jun-22 48,000.00 (48,160.90) (160.90) (785,154.71) 9
30-Jun-23 48,000.00 (48,170.77) (170.77) (785,325.48) 10
30-Jun-24 48,000.00 (48,181.25) (181.25) (785,506.72) 11
30-Jun-25 48,000.00 (48,192.36) (192.36) (785,699.09) 12
30-Jun-26 48,000.00 (48,204.17) (204.17) (785,903.25) 13
30-Jun-27 48,000.00 (48,216.69) (216.69) (786,119.95) 14
30-Jun-28 48,000.00 (48,229.99) (229.99) (786,349.93) 15
30-Jun-29 48,000.00 (48,244.10) (244.10) (786,594.03) 16
30-Jun-30 48,000.00 (48,259.07) (259.07) (786,853.10) 17
30-Jun-31 48,000.00 (48,274.97) (274.97) (787,128.07) 18
30-Jun-32 48,000.00 (48,291.84) (291.84) (787,419.91) 19
30-Jun-33 48,000.00 (48,309.74) (309.74) (787,729.65) 20
30-Jun-34 48,000.00 (48,328.75) (328.75) (788,058.40) 21
30-Jun-35 48,000.00 (48,348.92) (348.92) (788,407.31) 22
30-Jun-36 48,000.00 (48,370.32) (370.32) (788,777.64) 23
30-Jun-37 48,000.00 (48,393.04) (393.04) (789,170.68) 24
30-Jun-38 48,000.00 (48,417.16) (417.16) (789,587.83) 25
30-Jun-39 48,000.00 (48,442.75) (442.75) (790,030.58) 26
30-Jun-40 48,000.00 (48,469.91) (469.91) (790,500.50) 27
30-Jun-41 48,000.00 (48,498.74) (498.74) (790,999.24) 28
30-Jun-42 48,000.00 (48,529.34) (529.34) (791,528.58) 29
30-Jun-43 48,000.00 (48,561.82) (561.82) (792,090.40) 30
30-Jun-44 48,000.00 (48,596.29) (596.29) (792,686.68) 31
30-Jun-45 48,000.00 (48,632.87) (632.87) (793,319.55) 32
30-Jun-46 48,000.00 (48,671.70) (671.70) (793,991.25) 33
30-Jun-47 48,000.00 (48,712.91) (712.91) (794,704.16) 34
30-Jun-48 48,000.00 (48,756.65) (756.65) (795,460.80) 35
30-Jun-49 48,000.00 (48,803.07) (803.07) (796,263.87) 36
30-Jun-50 48,000.00 (48,852.34) (852.34) (797,116.21) 37
30-Jun-51 48,000.00 (48,904.63) (904.63) (798,020.83) 38
30-Jun-52 48,000.00 (48,960.13) (960.13) (798,980.96) 39
30-Jun-53 48,000.00 (49,019.04) (1,019.04) (800,000.00) 40
(-)

(-)
(+)

Date Cash Interest Principal Balance

30-Jun-13 - - - (784,000.00)
30-Jun-14 48000 (48,099.92) (99.92) (784,099.92)
30-Jun-15 48000 (48,106.06) (106.06) (784,205.98)
30-Jun-16 48000 (48,112.56) (112.56)
30-Jun-17 48000
30-Jun-18 48000
30-Jun-19 48000
30-Jun-20 48000