(Learning Objective 1: Measuring current liabilities) Sea Breeze Marine experienced these events during the current year.

a. December revenue totaled €110,000, and in addition, Sea Breeze collected sales tax of 8%. The tax amount will be sent to the Groningen provincial offi ce early in January.

b. On August 31, Sea Breeze signed a six-month, 4% note payable to purchase a boat costing €82,000. The note requires payment of principal and interest at maturity.

c. On August 31, Sea Breeze received cash of €1,200 in advance for service revenue.

This revenue will be earned evenly over six months.

d. Revenues of €750,000 were covered by Sea Breeze’s service warranty. At January 1, provision for warranty repairs was €11,400. During the year, Sea Breeze recorded warranty expense of €30,000 and paid warranty claims of €34,600.

e. Sea Breeze owes €85,000 on a long-term note payable. At December 31, 10% interest for the year plus €25,000 of this principal are payable within one year.

❙ Requirement 1. For each item, indicate the account and the related amount to be reported as a current liability on the Sea Breeze Marine balance sheet at December 31.