Assume Costello Electronics completed these selected transactions during September 2016: a. Sales of $2,500,000 are subject to

Question:

Assume Costello Electronics completed these selected transactions during September 2016:
a. Sales of $2,500,000 are subject to estimated warranty cost of 3%. The estimated warranty payable at the beginning of the year was $36,000, and warranty payments for the year totaled $52,000.
b. On September 1, Costello signed a $65,000 note payable that requires annual payments of $13,000 plus 5% interest on the unpaid balance each September 2.
c. Save More, Inc., a chain of discount stores, ordered $110,000 worth of wireless speakers and related products. With its order, Save More, Inc., sent a check for $110,000, and Costello shipped $60,000 of the goods. Costello will ship the remainder of the goods on October 3, 2016.
d. The September payroll of $200,000 is subject to employee withheld income tax of $30,700 and FICA tax of 7.65%. On September 30, Costello pays employees their take-home pay and accrues all tax amounts.
Requirement
1. Report these items on Costello Electronics' at September 30, 2016.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...