(Learning Objectives 1, 5: Reporting current and long-term liabilities) Assume Five Mile Electronics completed these selected transactions during September 20X0.

a. Sales of €2,150,000 are subject to estimated warranty cost of €107,500. The provision for warranty repairs at the beginning of the year was €33,000, and warranty payments for the year totaled €57,000.

b. On September 1, Five Mile Electronics signed a €40,000 note payable that requires annual payments of €10,000 plus 4% interest on the unpaid balance each September 2.

c. Music For You, Inc., a chain of music stores, ordered €110,000 worth of CD players.

With its order, Music For You, Inc., sent a cheque for €110,000, and Five Mile Electronics shipped €90,000 of the goods. Five Mile Electronics will ship the remainder of the goods on October 3, 20X0.

d. The September payroll of €240,000 is subject to employee withheld income tax of

€30,000 and payroll tax of 7.65%. On September 30, Five Mile Electronics pays employees their take-home pay and accrues all tax amounts.

❙ Requirement 1. Report these items on Five Mile Electronics’ balance sheet at September 30, 20X0.