Crane Company sold 10,800 Super-Spreaders on December 31, 2025, at a total price of $1,004,400, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $604,800. The assurance warranties extend for a 2-year period and are estimated to cost $38,500. Crane also sold extended warranties (service-type warranties) related to 2,200 spreaders for 2 years beyond the 2-year period for $13,200. Given this information, determine the amounts to report for the following at December 31. 2025: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash. Amounts Reported in Income Amounts Reported on the Balance Sheet 11

Crane Company sold 10,800 Super-Spreaders on December 31, 2025, at a total price of $1,004,400, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $604,800. The assurance warranties extend for a 2-year period and are estimated to cost $38,500. Crane also sold extended warranties (service-type warranties) related to 2,200 spreaders for 2 years beyond the 2-year period for $13,200. Given this information, determine the amounts to report for the following at December 31. 2025: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash. Amounts Reported in Income Amounts Reported on the Balance Sheet 11

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 31CE

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