ABC Corporation of Puerto Rico sells all types of name brand electronic equipment like computers, fax machines, cameras and more. The company started operations on October 1, 2015; uses the net price method to record its merchandise, uses a perpetual inventory system, closes its books on December 31, and publishes its Annual Report by March 31 of each year.

On October 1, 2015, purchased, on credit, 2,000 units of merchandise at $500 each.Terms of the purchase were 2/10, n/120.Paid for 20% of these units on October 9, 2015 and the remaining 80% on January 2016.

On January, 2016 ABC entered into an agreement with its supplier to pay half of the amount owed using ABCs common stocks.The other half was paid with cash.

On December 1, 2015, purchased merchandise for $25,000, and issued a12%, 120-day note to XYZ.

On November 16, 2015, borrowed $20,000 from the Last Bank by issuing a 90 day, non-interest bearing note.The bank discounted this note at 12% and remitted to ABC the difference.

On October 30, 2015, acquired new equipment and signed a 12-month note for $24,000. The face value of the note includes the price of the equipment and interests. The note is paid in four $6,000 quarterly installments. The value of the equipment is the present value of the four quarterly payments discounted at an annual interest rate of 16%.

During the last quarter of 2015, the company had the following summary transactions:

Cash sales of $210,000, subject to sales taxes of 6%.

Sales on credit of $260,000, subject to sales taxes of 6%.

These taxes were paid on 2016.

The payroll for 2015 was as follows:

Total payroll, $177,000

Payroll in excess of $118,500, $2,500

Payroll in excess of $9,000, $153,000

Payroll in excess of $7,000, $157,000

No salaries are subject to the Additional Medicare Tax of 0.9%.

Income taxes withheld, $27,357

Union dues withheld, $10,000

The company pays the state unemployment taxes in full, on time, and on all the same wages as are subject to FUTA tax.

During its first quarter of operations the company sold gift certificates totaling $4,000. By December 31, 2015 all but $750 worth of these certificates had been redeemed.Outstanding certificates were redeemed by January 5, 2016.

On December 25, 2015, ABC learned that one of its competitors is selling in Puerto Rico a product over which ABC has exclusive rights to sell in the Caribbean.ABC filed suit against the competitor and in all likelihood, its attorneys felt, ABC should recover at least $500,000.

REQUIRED:

Compute ABC Electronics TOTAL CURRENT LIABILITIES for 2015. Show all necessary computations.