Ayayai Corp. has manufactured a broad range of quality product since $1994.$ The operating cycle of the business is less than one year. The following information is available for the company$$s fiscal year ended February $28,2023.$ Ayayi follows ASPE.

$1$ Ayayai has $$3\mathrm{.}5$ million of bonds payable outstanding at February$29,2023$ which were issued at par in $2012$ and are due in $2032.$ The bonds carry interest rate of $7\%$ payable semi$-$annually each June $1$ and December$1.$

$2.$ Ayayai has several notes payable outstanding with its primary banking institution at February $29,2023.$In each case, the annual interest is due on the anniversary date of the note each year $($same as the due dates listed$).$ The notes are as follows:

Due Date Amount Due Interest rate

Apr$\mathrm{.}1,2023$ $$156,0007\%$

Jan. $31,2024198,0008\%$

Mar$\mathrm{.}15,2024516,0006\%$

Oct. $30,2025252,0007\%$

$3.$ Ayayai uses the expense approach to account for assurance$-$type warranties. The company has a two$-$year warranty on selected products with an estimated cost of $1\%$ of sales being returned in the $12$ months following the sale, and a cost of$1\mathrm{.}5\%$ of sales being returned in months$13$ to $24$ following the sale. The warranty liability outstanding at February $28,2022$ was $$5,800.$ Sales of warranted products in the year ended February $29,2023,$ were $$156,000.$ Actual warranty costs incurred during the current fiscal year are as follows:

Warranty claims honoured on $2021-2022$ sales $$5,000$

Warranty claims honoured on $2022-2023$ sales $1,400$

$$6,400$

$4.$ The accounts payable subsidiary ledger shows balances of regular trade payables for supplies and purchases of goods and services on open account. Included in the net balance of $$397,000$ are accounts with credit balances totaling $$417,000$ and accounts with debit balances totalling $$20,000$ at February $29,2023.$ Included in trade payables is a short$-$term loan of$$20,000$ owing to an affiliated company.

$5.$ The following information relates to Ayayai$$s payroll for the month of February $2023.$ Ayayai$$s required contribution for EI is $1\mathrm{.}4$ times the employee contribution; for CPP$,$ it is $1\mathrm{.}0$ times the employee contribution.

Salaries and wages outstanding at February $29,2023$ $$210,000$

For the last payroll of the year, the following unpaid balances apply:

EI withheld from employees $9,900$

CPP withheld from employees $16,700$

Income taxes withheld from employees $49,100$

Union dues withheld from employees $22,000$

$6.$ Ayayai regularly pays GST owing to the Receiver General for the Canada on the $15$th of the month. Ayayai$$s GST transactions include the GST that it charges to customers and the GST that is charged by suppliers of goods and services. During February $2023,$ purchases attracted $$27,800$ of GST$,$ while the GST charged on invoices to customers totalled $$39,400.$ At January $31,2023.$ The balances in the GST Receivable and GST Payable accounts were $$33,700$ and $$29,400.$ Respectively.

$7.$ Other miscellaneous liabilities included $$46,000$ of dividends payable on March $15,2023$; $$20,000$of bonuses payable to company executives $(75\%$ payable in September $2023$ and $25\%$ payable in March $2024)$; and $$71,000$ in accrued audit fees covering the year ended February $29,2023.$

$8.$ Ayayai sells gift cards to its customers. The Company does not set a redemption date and customers can use their March $1,2022,$ Ayayai had a balance outstanding of $$92,000$ in its Unearned Revenue account. Ayayai received $$23,000$ in cash for gift cards purchased during the current year, and $$37,100$ in redemptions took place during the year. Based on past experience, $15\%$ of customer gift card balances never get redeemed. At the end of each year, Ayayai recognizes$15\%$ of the opening balance of unearned Revenue as earned during the year.

$($a$)$ Prepare the current liability section of the February $29,2023$ balance sheet of Ayayai.$($Round answers to $0$ decimal places, e$.$g $5,275.)$

AYAYAI CORP.

Statement of Financial Position $($Partial$)$

Current Liabilities