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Question2. Peanut Corporation also purchased a machine on Jan 4, 2019 for $47,000. The estimated life of the machine is 7 years or 85,000 hours. The estimated residual value is $2,000. What is the amount of depreciation expense for 2019 and 2020 if Peanut Corporation used the machine for 8,000 hours in 2019 and 10,000 hours in 2020 and uses the units-of-production method of depreciation? Answer: I BUSI 1043: INTRODUCTION TO FINANCIAL ACCOUNTING Case 2 - Marks 100 (5%) Student Name and ID Sect Question 1 Green corporation started its business in 2019. It sold computers and electronics items for $254,000 in 2019. The company has provided a 2-year limited warranty for all sales. The company's estimate is that warranty costs for the first year will be 1% and will be 3% in the second year. Green Corporation spent $2,550 on warranty repairs during 2019. a. Prepare all journal entries related to the warranty for 2019. b. How will the warranty liability be reported on the balance sheet on Dec 31, 2019? Date Account Debit Credit Question 2 Green Corporation is authorized to issue 110,000 common shares and 90,000, $3 preferred shares. At Jan 2019. the communis shareholders. comity included the below (A W Air Question 2 Green Corporation is authorized to issue 110,000 common shares and 90,000, $3 preferred shares. At Je 1, 2019, the company's shareholders equity included the below: 24,000 common shares valued at $234,000 9,000 preferred shares valued at $118,000 Retained earning was $54,000 During 2019 the net profit earned by Green Corp, was $32,000. The company did not issue any dividena during 2019. Also during 2019 the company issued the below: On Apr 4, 2019 - 10,000 common shares for $12 each On Jun 10, 2019 - 5.000 preferred shares for $15 each and On Aug 7, 2019 - 11,000 common shares for land valued at $145,000. Prepare the shareholders equity part of the balance sheet in Dec 31, 2019. Answer: Green Corporation Partial Balance Sheet December 31, 2019 w ok Air

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