E11-14 Assume that Wilson Sporting Goods completed these selected transactions during December 20X1: a. Sales of $1,000,000
Question:
E11-14 Assume that Wilson Sporting Goods completed these selected transactions during December 20X1:
a. Sales of $1,000,000 are subject to estimated warranty cost of 3.4%.
b. On December 1. Wilson signed a $200,000 note payable that requires annual payments of $20,000 plus 9% interest on the unpaid balance each December 1.
c. Champs, a chain of sporting goods stores, ordered $9,000 of tennis and golf equipment. With its order, Champs sent a check for $9.000 in advance. Wilson will ship the goods on January 3, 20X2.
d. The December payroll of $195,000 is subject to employee withheld income tax of 9%. FICA tax of 8% (employee and employer), state unemployment tax of 5.4%, and federal unemployment tax of 0.8%. On December 31, Wilson pays employees but accrues all tax amounts. Required Classify each liability as current or long-term, and report the amount that would appear for each item on Wilson's balance sheet at December 31, 20X1. Show total current liabilities.
Step by Step Answer:
Accounting
ISBN: 9780130906991
5th Edition
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones