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Question 1:

a.Sales of $ 2,400,000 are subject to an accrued warranty cost of 8%. The accrued warranty payable at the beginning of the year was $ 39000, and warranty payments for the year totaled $ 58000.

b.On March 1, Banff Electronics signed a $ 25000 note payable that requires annual payments of $ 5000 plus 8% interest on the unpaid balance beginning March 1, 2019.

c.Panorama, Inc., a chain of discount stores, ordered $ 105000 worth of wireless speakers and related products. With its order, Panorama, Inc., sent a check for $ 105000 in advance, and Banff shipped $ 85000 of the goods. Banff will ship the remainder of the goods on April 3, 2018.

d.Banff's March payroll of $ 300000 is subject to employee withheld income tax of $ 30100 and FICA tax of 7.65%. On March 31, Banff pays employees their take-home pay and accrues all tax amounts.

Report these items on Banff Electronics' balance sheet at March 31 2018

2. Canter Corp. purchased ten $ 1000 8% bonds of Power Source Corporation when the market rate of interest was 12%. Interest is paid semiannually, and the bonds will mature in five years.

Using the PV function in Excel Superscript, compute the price Canter paid (the present value) for the bond investment. (Assume that all payments of interest and principal occur at the end of the period. Round your answer to the nearest cent.)

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