Assume that Banff Electronics completed these selected transactions during March 2012: a. Sales of $2,400,000 are subject

Question:

Assume that Banff Electronics completed these selected transactions during March 2012:
a. Sales of $2,400,000 are subject to estimated warranty cost of 4%. The estimated warranty payable at the beginning of the year was $35,000, and warranty payments for the year totaled $57,000.
b. On March 1, Banff Electronics signed a $65,000 note payable that requires annual payments of $16,250 plus 7% interest on the unpaid balance each March 2.
c. 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 Banff shipped $85,000 of the goods. Banff will ship the remainder of the goods on April 3, 2012.
d. The March payroll of $320,000 is subject to employee withheld income tax of $30,900 and FICA tax of 7.65%. On March 31, Banff pays employees their take-home pay and accrues all tax amounts.

Requirement
Report these items on Banff Electronics’ at March 31, 2012.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...