Pontoon Creations produces and sells customized boats for resorts in Ontario. The company offers a 60 -day, all parts and labour-and an extra 90 -day, parts-onlywarranty on all of its products. The company had the following transactions in 2020 :

Required 1. Journalize the above transactions.
2. Show the appropriate financial statement presentation for all liabilities at March \(31,2020\).

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9 Jan. 31 31 Feb. 4 7 28 28 Mar. 7 00 8 15 21 Sales for the month totalled $80,000 (not including HST), of which 90 percent were on credit. The company collects 13 percent HST on all sales and estimates its warranty costs at 4 percent of sales. Based on last year's property tax assessment, the company estimated that the property taxes for the year would be $60,000 (3 percent of last year's $2,000,000 assessed value). Recorded the estimated property taxes for the month; credited Property Taxes Payable. Completed repair work for a customer. The parts ($500) and labour ($850) were all covered under the warranty. Record the labour as Wages Expense. Sent a cheque for the appropriate HST for the month of January (the company had paid $3,700 of HST on purchases in January). Recorded the estimated property taxes for the month of February. Sales for the month totalled $92,000 (not including HST), of which 85 percent were on credit. The company estimates its warranty costs at 4 percent of sales. Sent a cheque for the appropriate HST amount for the month of Febru- ary (the company had paid $4,750 of HST on purchases in February). Pontoon Creations received notice that it was being sued by a cus- tomer for an accident resulting from the breakdown of its product. The company's lawyer was reluctant to estimate the likely outcome of the lawsuit, but another customer indicated that a similar case had resulted in a $500,000 settlement. Completed repair work for a customer. The parts ($2,500) and labour ($1,200) were all covered under the warranty. Completed repair work for a customer. The parts ($750) were covered by the warranty, but the labour ($500) was not. Payment from the cus- tomer is due for the labour in 30 days.