Question

Following are pertinent facts about events during the current year at Z Boyz Snowboards.

Requirement

1.

For each? item, indicate the account and the related amount to be reported as a current liability on Z Boyz Snowboards' December 31 balance sheet. Round calculations to the nearest dollar. More Info a December sales totaled $404,000?, and Z Boyz collected sales tax of 4 percent. The sales tax will be sent to the state of Oregon early in January. b. Z Boyz owes 85,000 on a? long-term note payable. At December? 31, 7 percent interest for the year plus $15,000 of principal are payable within one year. c. On August? 31, Z Boyzsigned a? six-month,77 percent note payable to purchase a machine costing $84,000. The note requires payment of principal and interest at maturity. d. Sales of $909,000 were covered by the Z Boyz product warranty. At January? 1, estimated warranty payable was $12,000. During the? year, Z Boyz recorded warranty expense of $26,400 and paid warranty claims of $30,600. e. On October? 31, Z Boyz received cash of $2,850 in advance for the rent on a building. This rent will be earned evenly over six months.

I am having trouble with this question, could you guys help me to find out the soluation?

Thanks!

Answer 1

Z Boyz Snowboards
Current liabilities;	$
Sales tax payable ( $ 404,000 x 4% )	16,160
Note payable ( due within one year)	15,000
Accrued inteterst payable ( $ 85,000 x 7% )	5,950
Six-month, 77% note payable	84,000
Accrued inteterst payable ( $ 84,000 x 77% x 4/12 )	21,560
Waranty payable ( $ 12,000 + $ 26,400 - $ 30,600 )	7,800
Unearned rent revenue ( $ 2,850 x 4/6 )	1,900
Total current liabilities	152,370