Reference no: EM132725049

Sports Company is located in Alberta. Below are the following situations that occurred during the year. Note that Sports Company has a December 31, 2020 year end.

a) They received funds of $170,000 for a baseball game on August 1, 2020. The baseball game is not scheduled to occur until March 1, 2021. (Ignore GST)

b) During December, Sports Company sold 600 foam ?ngers that have a 90-day warranty. The company expects that 20% of the foam ?ngers will require repairs under warranty. They expect that average repair cost per unit will be 531. (Ignore GST)

c) Sports Company sold jerseys at a Volleyball game in November. They sold 150 jerseys at $60 each, plus applicable GST (5%). The cost of sales are 60% ofthe sale price.

d) A fan fell down the stairs during a football game that occurred in September. Sports Company's lawyers believe the company will have to pay for damage, however, the amount cannot be reasonably estimated at this time.

Required:

Problem 1: Prepare any required adjusting entries at Dec 31, 2020, for each of the above situations.