Hello,

I need help with these questions, please.

During 2015, Gum Co. introduced a new product carrying a two-year assurance-type warranty against defects. Gum Co. uses the expense warranty approach. The estimated warranty costs related to dollar sales are 6%. Sales and actual warranty expenditures for the years ended December 31, 2015 and 2016 are as follows: What amount should Gum report as estimated warranty liability on its December 31, 2016 balance sheet?.

a. $7,500

b. $4,250

c. $11,250

d. $14,250

e. $16,500

On December 1, 2018, Mason Corp. sold $800,000 of its ten-year, 8% term bonds dated November 1, 2018. The bonds were sold to yield 10%, with total proceeds of $700,000 plus accrued interest. Interest is paid every May 1 and November 1. What amount should Mason report for interest payable in its December 31, 2018 balance sheet?

Select one:

a. $5,333

b. $16,000

c. $26,667

d. $10,667

e. $20,000

Thank You so much, I really appreciate your help !!!!

2015 2016 Sales $150,000 250,000 00.000 Actual Warranty Expenditures $2,250 7500