Gonzalez Equipment Company sold 600 Rollomatics during 2014 at $4,000 each.
During 2014, Gonzalez spent $30,000 servicing the 2-year warranties that accompany
the Rollomatic. All applicable transactions are on a cash basis.

Instructions

(a) Prepare 2014 entries for Gonzalez using the expense warranty approach. Assume
that Gonzalez estimates the total cost of servicing the warranties will be $150,000 for
2 years.
(b) Prepare 2014 entries for Gonzalez assuming that the warranties are not an integral
part of the sale. Assume that of the sales total, $200,000 relates to sales of warranty
contracts. Gonzalez estimates the total cost of servicing the warranties will be
$150,000 for 2 years. Estimate revenues earned on the basis of costs incurred and
estimated costs. (Tips: warranty sold separately is treated as unearned revenue)

answer; i believe the correct answer is radioactive decay);

24 years, i believe is the correct answer.

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.