a. December revenue totaled $130,000; and, in addition, Sea Breeze collected sales tax of 5%. The tax amount will be sent to the state of Massachusetts early in January. b. On August 31, Sea Breeze signed a six-month, 12% note payable to purchase a boat costing $94,000. The note requires payment of principal and interest at maturity. c. On August 31, Sea Breeze received cash of $3,000 in advance for service revenue. This revenue will be earned evenly over six months. d. Revenues of $750,000 were covered by Sea Breeze's service warranty. At January 1, accrued warranty payable was $11,300. During the year, Sea Breeze recorded warranty expense of $30,000 and paid warranty claims of $34,600. e. Sea Breeze owes $70,000 on a long-term note payable. At December 31, 12% interest for the year plus $45,000 of this principal are payable within one year.
a. December revenue totaled $130,000; and, in addition, Sea Breeze collected sales tax of 5%. The tax amount will be sent to the state of Massachusetts early in January. b. On August 31, Sea Breeze signed a six-month, 12% note payable to purchase a boat costing $94,000. The note requires payment of principal and interest at maturity. c. On August 31, Sea Breeze received cash of $3,000 in advance for service revenue. This revenue will be earned evenly over six months. d. Revenues of $750,000 were covered by Sea Breeze's service warranty. At January 1, accrued warranty payable was $11,300. During the year, Sea Breeze recorded warranty expense of $30,000 and paid warranty claims of $34,600. e. Sea Breeze owes $70,000 on a long-term note payable. At December 31, 12% interest for the year plus $45,000 of this principal are payable within one year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Sea Breeze Marine experienced these events during the current year.
i (Click the icon to view the facts.)
Requirement
1. For each item, indicate the account and the related amount to be reported as a current liability on the Sea Breeze Marine balance sheet at December 31. (Round your final answers to the nearest whole dollar.)
a. December revenue totaled $130,000; and, in addition, Sea Breeze collected sales tax of 5%. The tax amount will be sent to the state of Massachusetts early in January. Indicate the account and the related amount to be reported as a current
liability on the Sea Breeze Marine balance sheet at December 31. (Complete all input fields.)
Account
Amount
More info
a.
b. On August 31, Sea Breeze signed a six-month, 12% note payable to purchase a
boat costing $94,000. The note requires payment of principal and interest at
maturity.
C
December revenue totaled $130,000; and, in addition, Sea Breeze collected
sales tax of 5%. The tax amount will be sent to the state of Massachusetts early
in January.
d.
On August 31, Sea Breeze received cash of $3,000 in advance for service
revenue. This revenue will be earned evenly over six months.
Revenues of $750,000 were covered by Sea Breeze's service warranty. At
January 1, accrued warranty payable was $11,300. During the year, Sea Breeze
recorded warranty expense of $30,000 and paid warranty claims of $34,600.
e. Sea Breeze owes $70,000 on a long-term note payable. At December 31, 12%
interest for the year plus $45,000 of this principal are payable within one year.
Print
Done
X
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