Assume Jasper Electronics completed these selected transactions during June 2012.
a. Sales of $2,100,000 are subject to estimated warranty cost of 6%. The estimated warranty payable at the beginning of the year was $36,000, and warranty payments for the year totaled $51,000.
b. On June 1, Jasper Electronics signed a $45,000 note payable that requires annual payments of $11,250 plus 7% interest on the unpaid balance each June 2.
c. Music For You, Inc., a chain of music stores, ordered $130,000 worth of CD players. With its order, Music For You, Inc., sent a check for $130,000, and Jasper Electronics shipped $75,000 of the goods. Jasper Electronics will ship the remainder of the goods on July 3, 2012.
d. The June payroll of $300,000 is subject to employee withheld income tax of $30,300 and FICA tax of 7.65%. On June 30, Jasper Electronics pays employees their take-home pay and accrues all tax amounts.