Question

For each item, indicate the account and the related amount to be reported as a current liability on the Big Wave Marine balance sheet at December 31. Account Amount a. Account Amount b. Account Amount c. Account Amount d. Account Amount e. Choose from any list or enter any number in the input fields and then continue to the next question. More Info 

a. December revenue totaled $ 150 comma 000; and, in addition, Big Wave collected sales tax of 5%. The tax amount will be sent to the state of North Carolina early in January. 

b. On August 31, Big Wave signed a six-month, 4% note payable to purchase a boat costing $ 92 comma 000. The note requires payment of principal and interest at maturity. 

c. On August 31, Big Wave received cash of $ 5 comma 000 in advance for service revenue. This revenue will be earned evenly over six months. 

d. Revenues of $ 800 comma 000 were covered by Big Wave's service warranty. At January 1, accrued warranty payable was $ 11 comma 300. During the year, Big Wave recorded warranty expense of $ 32 comma 000 and paid warranty claims of $ 34 comma 300. 

e. Big Wave owes $ 75 comma 000 on a long-term note payable. At December 31, 9 % interest for the year plus $ 35 comma 000 of this principal are payable within one year.

Answer 1

Account		Amount
a)	Sales Tax Payable	7500 (150,000*5%)
b)	Notes Payable, Short term	92000
	Interest Payable	1226.67 (92,000*4%*4/12)
c)	Unearned Service Revenue	1666.67 (5,000*2/6)
d)	Estimated warranty payable	9000 (11,300+32,000-34,300)
e)	Current portion of Long-term note payable	35000
	Interest payable	6750 (75000*9%)