E9-39B. (Learning Objectives 1, 5: Reporting current and long-term liabilities) Assume Hi-Tech Electronics completed these transactions during September 20X0.

a. Sales of €2,150,000 are subject to estimated warranty cost of €112,500. The provision for warranty repairs at the beginning of the year was €34,000, and warranty payments for the year totaled €57,000.

b. On September 1, Hi-Tech Electronics signed a €44,000 note payable that requires annual payments of €11,000 plus 4% interest on the unpaid balance each September 2.

c. Music For You, Inc., a chain of music stores, ordered €100,000 worth of CD players.

With its order, Music For You, Inc., sent a check for €100,000, and Hi-Tech Electronics shipped €85,000 of the goods. Hi-Tech Electronics will ship the remainder of the goods on October 3, 20X0.

d. The September payroll of €250,000 is subject to employee withheld income tax of €30,000 and payroll tax of 7.65%. On September 30, Hi-Tech Electronics pays employees their take-home pay and accrues all tax amounts.
Requirement 1. Report these items on Hi-Tech Electronics’ Balance Sheet at September 30, 20X0.