Big Wave Marine experienced these events during the current year.
a. December revenue totaled $120,000, and in addition, Big Wave collected sales tax of 5%. The tax amount will be sent to the state of Florida early in January.
b. On August 31, Big Wave signed a six-month, 4% note payable to purchase a boat costing $85,000. The note requires payment of principal and interest at maturity.
c. On August 31, Big Wave received cash of $2,400 in advance for service revenue. This revenue will be earned evenly over six months.
d. Revenues of $850,000 were covered by Big Waves service warranty. At January 1, estimated warranty payable was $11,600. During the year, Big Wave recorded warranty expense of $34,000 and paid warranty claims of $34,800.
e. Big Wave owes $70,000 on a long-term note payable. At December 31, 12% interest for the year plus $35,000 of this principal are payable within one year.

Requirement
1. For each item, indicate the account and the related amount to be reported as a current liability on the Big Wave Marine balance sheet at December 31.