Comprehensive Liability Problem-Balance Sheet Presentation Balzac Inc has been producing quality children's apparel for more than 25 years. The company's fiscal year runs from April 1 to March 31. The following information relates to the obligations of Balzac as of March 31, 2015. Bonds Payable-Balzac issued $5,000,000 of 11% bonds on July 1, 2009, at 96 which yielded proceeds of $4,800,000 The bonds will mature on July 1, 2019. Interest is paid semiannually on July 1 and January 1. Balzac uses the straight-line method to amortize the bond discount. Notes Payable -Balzac has signed several long-term notes with financial institutions and insurance companies. The maturities of these notes are given below. The total unpaid interest for all of these notes amount to $210,000 on March 31, 2015. April 1, 2015 July 1, 2015 October 1, 2015 January 1, 2016 March 31, 2017 April 1, 2017-March 31, 2018 April 1, 2018-March 31, 2019 April 1, 2019-March 31, 2020 April 1, 2020-March 31, 2021 Amount Due 200,000 300,000 150,000 150,000 600,000 500,000 700,000 400,000 $3,500,000 Estimated Warranties -Balzac has a one-year product warranty on some selected items in its product line. The estimated warranty liability on sales made during the 2013-2014 fiscal year and still outstanding as of March 31, 2014 amounted to $84,000. The warranty costs on sales made from April 1, 2014 through March 31, 2015 are estimated at $210,000. The actual warranty costs incurred during the current 2014-15 fiscal year are as follows: Warranty claims honored on 2013-14 sales Warranty claims honored on 2014-15 sales Total warranty claims honored 84,000 95,000 $179,000 Other Information: 1 Trade payables -Accounts Payable for supplies, goods and services amounted to $370,000 as of March 31, 2015. 2. Payroll Related items-Outstanding obligations related to Balzac's payroll as of March 31, 2015 are: Accrued Salaries and Wages FICA Taxes State & Federal Income Tax Withheld-Employees Other Payroll Deductions $150,000 22,000 25,000 3. Taxes The following taxes incurred but not due until the next fiscal year are: $310,000 125,000 182,000 State and Federal Income Taxes Property Taxes Sales and Use Taxes