Assume that Premium Golf Equipment completed these selected transactions during December 2014:
a. Sales of $3,000,000 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 totalled $60,000.
b. On December 1, 2014, Premium signed a $150,000 note that requires annual payments of $30,000 plus 5% interest on the unpaid balance each December 1.
c. Golf Town, a chain of golf stores, ordered $125,000 of golf equipment. With its order, Golf Town sent a cheque for $125,000, and Premium shipped $100,000 of the goods. Premium will ship the remainder of the goods on January 3, 2015.
d. The December payroll of $100,000 is subject to employee-withheld income tax, Canada Pension Plan and Employment Insurance, and the company's share of Canada Pension Plan and Employment Insurance totalling $25,000 and benefits of $9,000. On December 31, Premium pays employees their take-home pay and accrues all tax amounts.
Requirement
Classify each liability as current or long-term and report the liability and its amount that would appear on the Premium Golf Equipment balance sheet at December 31, 2014. Show a total for current liabilities.