Western Electronics completed these selected transactions during March 2018: a. Sales of $2,400,000 are subject to an accrued warranty cost
Western Electronics completed these selected transactions during March 2018:
a. Sales of $2,400,000 are subject to an accrued warranty cost of 9%. The accrued warranty payable at the beginning of the year was $37,000, and warranty payments for the year totaled $59,000.
b. On March 1, Western signed a $20,000 note payable that requires annual payments of $4,000 plus 6% interest on the unpaid balance beginning March 1, 2019.
c. Urban, Inc., a chain of discount stores, ordered $140,000 worth of wireless speakers and related products. With its order, Urban, Inc., sent a check for $140,000, and Western shipped $55,000 of the goods. Western will ship the remainder of the goods on April 3, 2018.
d. Western’s March payroll of $260,000 is subject to employee withheld income tax of $30,500 and FICA tax of 7.65%. On March 30, Western pays employees their take-home pay and accrues all tax amounts.
1. Report these items on Western Electronics’ balance sheet at March 31, 2018.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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