(4)

Assume that SixMile Electronics completed these selected transactions during June 2014:

a.

Sales of $2,300,000 are subject to estimated warranty cost of 11%. The estimated warranty payable at the beginning of the year was $36,000, and warranty payments for the year totaled $57,000.

b.

On June 1, SixMile Electronics signed a $45,000 note payable that requires annual payments of $9,000

plus 5% interest on the unpaid balance each June 2.

c.

Music ForYou, Inc., a chain of musicstores, ordered $120,000 worth of CD players. With itsorder, Music ForYou, Inc., sent a check for $120,000 inadvance, and SixMile shipped $85,000

of the goods. Six Miles will ship the remainder of the goods on July 3, 2014.

d.

The June payroll of $300,000 is subject to employee withheld income tax of

$ 30,500 and FICA tax of 7.65%. On June 30, SixMile pays employees theirtake-home pay and accrues all tax amounts.

Requirement

1. Report these items on SixMile Electronics' balance sheet at June 30, 2014:

Select the statement account and label. Calculate eachaccount's balance and the total current liability amount at June 30, 2014.

(Round all amounts to the nearest whole dollar. Leave any unused cellsblank.)

Six Mile Electronics

Balance Sheet (partial)

June 30, 2014

Current liabilities:

Current portion of long-term note payable

Employee withheld income tax payable

Employment insurance payable

Estimated warranty payable

FICA tax payable

Interest payable

Interest payable

Long-term liabilities: