Assume Five Mile Electronics completed these selected transactio

Assume Five Mile Electronics completed these selected transactions during September 2010.
a. Sales of $2,150,000 are subject to estimated warranty cost of 5%. The estimated warranty payable at the beginning of the year was $33,000, and warranty payments for the year totaled $57,000.
b. On September 1, Five Mile Electronics signed a $40,000 note payable that requires annual payments of $10,000 plus 4% interest on the unpaid balance each September 2.
c. Music For You, Inc., a chain of music stores, ordered $110,000 worth of CD players. With its order, Music for You, Inc., sent a check for $110,000, and Five Mile Electronics shipped $90,000 of the goods. Five Mile Electronics will ship the remainder of the goods on October 3, 2010.
d. The September payroll of $240,000 is subject to employee withheld income tax of $30,000 and FICA tax of 7.65%. On September 30, Five Mile Electronics pays employees their take-home pay and accrues all tax amounts.

1. Report these items on Five Mile Electronics balance sheet at September 30, 2010.

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...


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