The city of morehead leased equipment. the life of the noncancellable lease is 10 years. using an 8 percent interest rate, the present value of the lease payments is $905,861. the first payment of $125,000 is due when the lease begins, january 10, 2017. an additional payment of $125,000 is due on january 10th for each of the next 9 years. prepare journal entries to record:

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?