Blue Corp. has manufactured a broad range of quality products since 1994. The operating cycle of the business is less than one year. The following information is available for the companys fiscal year ended February 28, 2023. Blue follows ASPE.

1. The company has $4 million of bonds payable outstanding at February 29, 2023, which were issued at par in 2012. The bonds carry an interest rate of 7%, payable semi-annually each June 1 and December 1.

2. Blue 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. 1, 2023 $150,000 9%

Jan. 31, 2024 216,000 10%

Mar. 15, 2024 492,000 8%

Oct. 30, 2025 240,000 9%

3. Blue 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 1.5% of sales being returned in months 13 to 24 following sale. The warranty liability outstanding at February 28, 2023, was $5,900. Sales of warrantied 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 $4,900

Warranty claims honoured on 2022 - 2023 sales 1,300

$6,000

4. The accounts payable subsidiary ledger shows balance of regular trade payables for supplies and purchases of goods and services on open account. Included in the net balance of $393,000 are accounts with credit balances totalling $413,000 and accounts with debit balances totalling $20,000 at February 29, 2023. Included in trade payable is a short term loan of $21,000 owing to an affiliated company.

5. The following information relates to Blues payroll for the month of February 2023. Blues required contribution for EI is 1.4 times that of the employee contribution; for CPP it is 1.0 times that of the employee contribution.

Salaries and wages outstanding at February 29, 2023 $205,000

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

EI withheld from employees 10,100

CPP withheld from employees 16,600

Income taxes withheld from employees 49,000

Union dues withheld from employees 21,600

6. Blue regularly pays GST owing to the government on the 15th of the month. Blues GST transactions include the GST that it charges to customers and the GST that it is charged by suppliers of goods and services. During February 2023, purchases attracted $27,100 of GST, while the GST charged on invoices to customers totalled $39,600. At January 31, 2023, the balances in the GST Receivable and GST Payable accounts were $34,000 and $59,200, respectively.

7. Other miscellaneous liabilities included $48,000 of dividends payable on March 15, 2023; $20,000 of bonuses payable to company executives (75% payable in September 2023, and 25% payable the following March 2024); and $76,000 in accrued audit fees covering the year ended February 29, 2023.

8. Blue sells gift cards to its customers. The company does not set a redemption date and customers can use their cards at any time. At March 1, 2022, Blue had a balance outstanding of $93,000 in its Unearned Revenue. The company received $23,000 in cash for gift cards purchased during the current year and $38,000 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, Blue recognizes 15% of the opening balance of Unearned Revenues as earned during the year.

Instruction (a) Prepare the current liability section of the February 29, 2023 balance sheet of Blue Corp.