Assume that Banff Electronics completed these selected transactions during September 2014:

a. Sales of $3,000,000 are subject to estimated warranty cost of 5%. The estimated warranty payable at the beginning of the year was $34,000, and warranty payments for the year totaled $54,000.

b. On September 1, Banff Electronics signed a $65,000 note payable that requires annual payments of $13,000 plus 7% interest on the unpaid balance each September 2.

c. Music For You, Inc., a chain of music stores, ordered $115,000 worth of CD players. With its order, Music For You, Inc., sent a check for $115,000 in advance, and Banff shipped $70,000 of the goods. Banff will ship the remainder of the goods on October 3, 2014.

d. The September payroll of $ 280,000 is subject to employee withheld income tax of $30,800 and FICA tax of 7.65%. On September 30, Banff pays employees their take-home pay and accrues all tax amounts.

Requirement

1. Report these items on Banff Electronics' balance sheet at September 30, 2014.

Complete the statement account and label. Calculate each accounts' balance and the total current liability amount at

September 30, 2014. (Round all amounts to the nearest whole dollar. Leave any unused cells blank.)

Banff Electronics

Balance Sheet (partial)

September 30, 2014

Current liabilities:

Long-term liabilities: