Group A

P$9-70$A$.($Learning Objective $1$: Measuring current liabilities$)$ Deep Waters Marine experienced these events during the current year:

a$.$ Its December revenue totaled $$140,000,$ and Deep Waters collected sales tax of $5\%.$ The tax amount will be sent to the Hanoi Municipality early in January.

b$.$ On August $31,$ Deep Waters signed a six$-$month, $4\%$ note payable to purchase a boat costing $$87,000.$ The note requires payment of principal and interest at maturity.

c$.$ On August $31,$ Deep Waters received cash of $$2,700$ in advance for service revenue. This revenue will be earned evenly over six months.

d$.$ Revenues of $$860,000$ were covered by Deep Waters's service warranty. At January $1,$ provision for warranty repairs was $$11,800.$ During the year, Deep Waters recorded warranty expense of $$34,400$ and paid warranty claims of $$34,800.$

e$.$ Deep Waters owes $$60,000$ on a long$-$term note payable. At December $31,12\%$ interest for the year plus $$30,000$ of this principal are payable within one year.

Requirement

For each item, indicate the account and the related amount to be reported as a current liability on the Deep Waters Marine Balance Sheet at December $31.$