Following are pertinent facts about events during the current year at Laughton Snowboards.

a. December sales totalled $405,000, and Laughton collected sales tax of 5%. The sales tax will be sent to Alberta early in January.

b. Laughton owes $70,000 on a long-term note payable. At December 31,6% interest for the year plus $45,000 of principal are payable within one year.

c. On August 31, Laughton signed a six-month, 6% note payable to purchase a machine costing $78,000. The note requires payment of principal and interest at maturity.

d. Sales of $101,000 were covered by a Laughton product warranty. At January 1, estimated warranty payable was $11,100. During the year, Laughton recorded warranty expense of $27,800 and paid warranty claims of $30,050.

e. On October 31, Laughton received cash of $3,990 in advance for the rent on a building. This rent will be earned evenly over six months.

Requirement

1. For each item, indicate the account and the related amount to be reported as a current liability on Laughton's December 31 balance sheet.