Question

Report these items on Five MileElectronics'balance sheet at June 30​,2018.

a.	Sales of $2,000,000 are subject to an accrued warranty cost of 6​%. The accrued warranty payable at the beginning of the year was $39,000​, and warranty payments for the year totaled $63,000.
b.	On June 1, Five Mile Electronics signed a $50,000 note payable that requires annual payments of $10,000 plus 5​% interest on the unpaid balance beginning June 1, 2019.
c.	Harrison Inc., a chain of discount​ stores, ordered $145,000 worth of wireless speakers and related products. With its​ order, Harrison, Inc., sent a check for $145,000 in​ advance, and Five Mile shipped $70,000 of the goods. Five Mile will ship the remainder of the goods on July 3, 2018.
d.	Five Mile June payroll of $220,000  is subject to employee withheld income tax of $31,000 and FICA tax of 7.65​%. On June 30​, Five Mile pays employees their​ take-home pay and accrues all tax amounts.

Answer 1

Five Mile Electronics
Balance sheet (Partial)
As at June 30​, 2018
Current Liabilities;
Current Portion of Long Term Note Payable	$         10,000
Interest Payable (50000*5%*1/12)	$              208
Employee withheld Income Tax Payable	$         31,000
FICA Tax Payable (220000*7.65%)	$         16,830
Unearned Sales Revenue (145000-70000)	$         75,000
Accrued Warranty Payable (2000000*6%+39000-63000)	$         96,000
Total Current Liabilities	$       229,038
Long Term Liabilities:
Note Payable (50000-10000)	$         40,000
	$       269,038