| 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. |
