Reference no: EM133159776

Questions - Make the journal entries for these issues:

1. TEL sold 50,000 laser-projection, virtual keyboards to Mega Mart. Mega Mart paid TEL in cash up front. The keyboards were sold for $30 each, and include a one-year warranty. The warranty is to be serviced by TEL, and not Mega Mart. Considering that the product is relying on relatively new technology, TEL estimates that approximately 5% of all keyboards will require some work. Management has estimated that the average cost per warranty claim will be $15. No claims have been made during the current fiscal year.

2. TEL holds a $650,000 loan, 6% interest rate with the Royal Legion Bank that is due on January 31, 2018. Management intends to refinance the loan into a five-year blended payment loan. As of year end, the company had received the financing contract, but it had not yet signed the document. The board of directors is expected to formally approve the refinancing at the upcoming meeting on January 10, 2018. The loan is classified as non-current.