Report current and long-term liabilities
Response to the following problem:
Assume Pippin Electronics completed these selected transactions during June 2014.
a. Sales of $1,900,000 are subject to estimated warranty cost of 6%. The estimated warranty payable at the beginning of the year was $29,000, and warranty payments for the year totaled $46,000.
b. On June 1, Pippin Electronics signed a $42,000 note payable that requires annual payments of $10,500 plus 4% interest on the unpaid balance each June 2.
c. Music For You, Inc., a chain of music stores, ordered $125,000 worth of CD players. With its order, Music For You, Inc., sent a check for $125,000, and Pippin Electronics shipped $85,000 of the goods. Pippin Electronics will ship the remainder of the goods on July 3, 2014.
d. The June payroll of $270,000 is subject to employee withheld income tax of $28,300 and FICA tax of 7.65%. On June 30, Pippin Electronics pays employees their take-home pay and accrues all tax amounts.