Question

Jasper Electronics completed these selected transactions during June 2018

Requirement

1. Report these items on

Jasper ​Electronics' balance sheet at June 30​, 2018.

Select the balance sheet​ accounts, then calculate each​ accounts' balance and the total current liabilities amount at

​(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.

a.	Sales of $ 2 100 000 are subject to an accrued warranty cost of 12​%. The accrued warranty payable at the beginning of the year was $39,000​, and warranty payments for the year totaled $55,000.
b.	On June ​1, Jasper Electronics signed a $65,000 note payable that requires annual payments of $13,000 plus 77​% interest on the unpaid balance beginning June 1, 2019.
c.	Urban​, Inc., a chain of discount​ stores, ordered $150,000 worth of wireless speakers and related products. With its​ order, Urban​, ​Inc., sent a check for $150,00 in​ advance, and Jasper shipped $85,000 of the goods. Jasper will ship the remainder of the goods on July 3, 2018.
d.	Jasper June payroll of $220,000 is subject to employee withheld income tax of $31,00 and FICA tax of 7.65​%. On June 30​, Jasper pays employees their​ take-home pay and accrues all tax amounts.

Answer 1

Prepare extract of balance sheet as follows:

Jasper Electronics
Balance Sheet (partial)
June 30, 2018
Liabilities
Current liabilities:
Warranty expense payable	$236,000
[$39,000 + ($2,100,000 × 12%) - $55,000]
Interest payable ($65,000 × 77% × 1/12)	$4,170.83
Advance from customers ($150,000 - $85,000)	$65,000
Salaries & wages payable	$200,070
[($220,000 - $3100)- ($220,000 × 7.65%)]
Federal income taxes payable	$3,100
FICA tax payable ($220,000 × 7.65%)	$16,830
Total current liabilities		$525,170.83
Long term liabilities:
Note payable	$65,000
Total long term liabilities		$65,000