Pharoah Company sold 10,100 Super-Spreaders on December 31, 2025, at a total price of $1,070,600, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $585,800. The assurance warranties extend for a 2-year period and are estimated to cost $36,600. Pharoah also sold extended warranties (service-type warranties) related to 2,000 spreaders for 2 years beyond the 2-year period for $12,000. 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 $

Pharoah Company sold 10,100 Super-Spreaders on December 31, 2025, at a total price of $1,070,600, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $585,800. The assurance warranties extend for a 2-year period and are estimated to cost $36,600. Pharoah also sold extended warranties (service-type warranties) related to 2,000 spreaders for 2 years beyond the 2-year period for $12,000. 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 $

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 10RE

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