Sea Spray Marina experienced these events during 2017. a. December revenue totaled $110,000 and, in addition, Sea Spra
Sea Spray Marina experienced these events during 2017.
a. December revenue totaled $110,000 and, in addition, Sea Spray collected sales tax of
7%. The sales tax amount will be remitted to the province of British Columbia early in January.
b. On October 31, Sea Spray signed a six-month, 7% note to purchase a boat costing $90,000. The note requires payment of principal and interest at maturity.
c. On August 31, Sea Spray received cash of $1,800 in advance for service revenue. This revenue will be earned evenly over six months.
d. Revenues of $900,000 were covered by Sea Spray's service warranty. At January 1, estimated warranty payable was $11,300. During the year, Sea Spray recorded warranty expense of $31,000 and paid warranty claims of $34,700.
e. Sea Spray owes $100,000 on a long-term note payable. At December 31, 6% interest for the year plus $20,000 of this principal are payable within one year.
For each item, indicate the account and the related amount to be reported as a current liability on the Sea Spray Marina balance sheet at December 31, 2017?