$($a$)$ Prepare the current liability section of the February $29,2023$ balance sheet of Sarasota. $($Round answers to $0$ decimal places, e$.$g$.$ Current Attempt in Progress

Sarasota Corp. has manufactured a broad range of quality products since $1994.$ The operating cycle of the business is less than one

year. The following information is available for the company's fiscal year ended February $28,2023.$ Sarasota follows ASPE.

Sarasota has $$3\mathrm{.}8$ million of bonds payable outstanding at February $29,2023,$ which were issued at par in $2012$ and are due in

The bonds carry an interest rate of $7\%,$ payable semi$-$annually each June $1$ and December $1.$

Sarasota has several notes payable outstanding with its primary banking institution at February $29,2023.$ In each case, the

annual interest is due on the anniversary date of the note each year $($same as the due dates listed$).$ The notes are as follows:Sarasota uses the expense approach to account for assurance$-$type warranties. The company has a two$-$year warranty on

selected products, with an estimated cost of $1\%$ of sales being returned in the $12$ months following the sale, and a cost of

$1\mathrm{.}5\%$ of sales being returned in months $13$ to $24$ following the sale. The warranty liability outstanding at February $28,2022,$

was $$5,900.$ Sales of warrantied products in the year ended February $29,2023,$ were $$153,000.$ Actual warranty costs

incurred during the current fiscal year are as follows:

The accounts payable subsidiary ledger shows balances of regular trade payables for supplies and purchases of goods and

services on open account. Included in the net balance of $$390,000$ are accounts with credit balances totalling $$410,000$ and

accounts with debit balances totalling $$20,000$ at February $29,2023.$ Included in trade payables is a short term loan of

$$26,000$ owing to an affiliated company.

The following information relates to Sarasota's payroll for the month of February $2023.$ Sarasota's required contribution for

El is $1\mathrm{.}4$ times the employee contribution; for CPP$,$ it is $1\mathrm{.}0$ times the employee contribution.

Salaries and wages outstanding at February $29,2023$

$$200,000$

For the last payroll of the year, the following unpaid balances apply:

El withheld from employees

CPP withheld from employees

$16,500$

Income taxes withheld from employees

$48,800$

Union dues withheld from employees

$21,700$ Sarasota regularly pays GST owing to the Receiver General for Canada on the $15$th of the month. Sarasota's GST transactions

include the GST that it charges to customers and the GST that it is charged by suppliers of goods and services. During

February $2023,$ purchases attracted $$27,200$ of GST$,$ while the GST charged on invoices to customers totalled $$39,500.$ At

January $31,2023,$ the balances in the GST Receivable and GST Payable accounts were $$33,800$ and $$59,500,$ respectively.

Other miscellaneous liabilities included $$55,000$ of dividends payable on March $15,2023$;$$30,000$ of bonuses payable to

company executives $(75\%$ payable in September $2023$ and $25\%$ payable in March $2024)$; and $$85,000$ in accrued audit fees

covering the year ended February $29,2023.$

Sarasota sells gift cards to its customers. The company does not set a redemption date and customers can use their cards at

any time. At March $1,2022,$ Sarasota had a balance outstanding of $$106,000$ in its Unearned Revenue account. Sarasota

received $$21,500$ in cash for gift cards purchased during the current year, and $$37,600$ in redemptions took place during the

year. Based on past experience, $15\%$ of customer gift card balances never get redeemed. At the end of each year, Sarasota

recognizes $15\%$ of the opening balance of Unearned Revenue as earned during the year.

$5,275.)$

SARASOTA CORP.

Statement of Financial Position $($Partial$)$

Current Liabilities

Total current liabilities

$

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