Assume that McKinley Electronics completed these selected transactions during Ma

Question

Assume that McKinley Electronics completed these selected transactions during March 2012: Requirement Report these items on McKinley Electronics' balance sheet at March 31, 2012. Report these items on McKinley Electronics' balance sheet at March 31, 2012. Select the statement account and label. Calculate each accounts' balance and the total current liability amount at March 31, 2012. (Round all amounts to the nearest whole dollar. Leave any unused cells blank.) Sales of $2,150,000 are subject to estimated warranty cost of 3%. The estimated warranty payable at the beginning of the year was $30,000, and warranty payments for the year totaled $54,000. On March 1, McKinley Electronics signed a $40,000 note payable that requires annual payments of $10,000 plus 6% interest on the unpaid balance each March 2. Music For You, Inc., a chain of music stores, ordered $100,000 worth of CD players. With its order, Music For You, Inc., sent a check for $100,000 in advance, and McKinley shipped $80,000 of the goods. McKinley will ship the remainder of the goods on April 3, 2012. The March payroll of $280,000 is subject to employee withheld income tax of $30,600 and FICA tax of 7.65%. On March 31, McKinley pays employees their take-home pay and accrues all tax amounts. Assume that Five Mile Electronics completed these selected transactions during March 2012: Requirement Report these items on Five Mile Electronics' balance sheet at March 31, 2012. Report these items on Five Mile Electronics' balance sheet at March 31, 2012. Select the statement account and label. Calculate each accounts' balance and the total current liability amount at March 31, 2012. (Round all amounts to the nearest whole dollar. Leave any unused cells blank.) Sales of $2,300,000 are subject to estimated warranty cost of 2%. The estimated warranty payable at the beginning of the year was $32,000, and warranty payments for the year totaled $50,000. On March 1, Five Mile Electronics signed a $60,000 note payable that requires annual payments of $15,000 plus 5% interest on the unpaid balance each March 2. 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 in advance, and Five Mile shipped $85,000 of the goods. Five Mile will ship the remainder of the goods on April 3, 2012. The March payroll of $320,000 is subject to employee withheld income tax of $30,700 and FICA tax of 7.65%. On March 31, Five Mile pays employees their take-home pay and accrues all tax amounts.

Explanation / Answer

Mackinley Electronics Balance sheet March 31st amount current liabilities estimated warranty payable $        40,500.00 (2150000*3%)+30000-54000 curent portion of long term note payable $        10,000.00 Interest payable $              600.00 C51*6% unearned sales revenue $        20,000.00 100000-80000 employee with held income tax payable $        30,600.00 FICA tax payable $        21,420.00 280000*7.65% long term liabilities Note payable $        30,000.00 40000-C51 Five mile Electronics Balance sheet March 31st amount current liabilities estimated warranty payable $        28,000.00 (2300000*2%)+32000-50000 curent portion of long term note payable $        15,000.00 Interest payable $              750.00 C64*5% unearned sales revenue $        40,000.00 125000-85000 employee with held income tax payable $        30,700.00 FICA tax payable $        24,480.00 320000*7.65% long term liabilities Note payable $        45,000.00

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