Question

Six Mile Electronics completed these selected transactions during September 2018: (Click the icon to view the transactions.) Requirement 1. Report these items on Six Mile Electronics' balance sheet at September 30, 2018 Select the balance sheet accounts, then calculate each accounts' balance and the total current liabilities amount at September 30, 2018. (For the FICA tax, be sure to include both the employer and employee share of the tax. Round all amounts to the nearest whole dollar. If a box is not used in the table leave the box empty; do not select a label or enter a zero.) * Transactions Six Mile Electronics Balance Sheet (partial) September 30, 2018 Amount Account Current liabilities: a. Sales of $3,000,000 are subject to an accrued warranty cost of 5%. The accrued warranty payable at the beginning of the year was $33,000, and warranty payments for the year totaled $60,000. b. On September 1, Six Mile Electronics signed a $50,000 note payable that requires annual payments of $10,000 plus 4% interest on the unpaid balance beginning September 1, 2019 c. McLean, Inc., a chain of discount stores, ordered $135,000 worth of wireless speakers and related products. With its order, McLean, Inc., sent a check for $135,000 in advance, and Six Mile shipped $50,000 of the goods. Six Mile will ship the remainder of the goods on October 3, 2018. d. Six Mile's September payroll of $220,000 is subject to employee withheld income tax of $30,200 and FICA tax of 7.65%. On September 30, Six Mile pays employees their take-home pay and accrues all tax amounts. Long-term liabilities: Print Done

Answer 1

Refer a below image for the above asked question, in a detailed way of solution.we have to these items on balance sheet of six mile electronics as at September 30 ,2018.

solution : Six Mile Electronics Balance sheet (partial) September 30, 2018 particulars Amount current liabilities : $123000 10000 a. Accrued Warranty payable [ $ 33000 +($ 3000000X0-05) - $ 60000] b. current portion of long-term note payable c. Enterest payable [1.30000 40004 + 1112] do unearned Sales Revenue [4135000 - 50000] e Employee income tax payable f. FICA Tak payable ($ 220000 * 0.07653 & 167 +85000 $ 30200 $33660* X2 Toral current liabilities १२४२०२३- Long-term liabilities : a. Note payable & Soooo - $ 10000) ť 40000 Note: * Federal income tax and the employee employee's wages. laws pay require 7.65 7. that FICA both the employer tax on the