(4)
Assume that Six Mile Electronics completed these selected transactions during June 2014:
a.
Sales of $2,300,000 are subject to estimated warranty cost of 11?%. The estimated warranty payable at the beginning of the year was $36,000, and warranty payments for the year totaled $57,000.
b.
On June 1, Six Mile Electronics signed a $45,000 note payable that requires annual payments of $9,000
plus 5?%interest on the unpaid balance each June 2.
c.
Music For? You, Inc., a chain of music? stores, ordered $120,000 worth of CD players. With its? order, Music For? You, Inc., sent a check for $120,000 in? advance, and Six Mile shipped $85,000
of the goods. Six Miles will ship the remainder of the goods on July 3, 2014.
d.
The June payroll of $300,000 is subject to employee withheld income tax of
?$ 30,500 and FICA tax of 7.65?%. On June 30, Six Mile pays employees their? take-home pay and accrues all tax amounts.
Requirement
1. Report these items on Six Mile Electronics’ balance sheet at June 30, 2014:
Select the statement account and label. Calculate each? account’s balance and the total current liability amount at June 30, 2014.
(Round all amounts to the nearest whole dollar. Leave any unused cells? blank.)
Six Mile Electronics
Balance Sheet (partial)
June 30, 2014
Current liabilities:
Current portion of long-term note payable
Employee withheld income tax payable
Employment insurance payable
Estimated warranty payable
FICA tax payable
Interest payable
Interest payable
Long-term liabilities:
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