Current liabilities: entries and disclosure. A review of selected financial activities of Visconti's during 20XX disclosed the following:

12/1: Borrowed $25,000 from the First City Bank by signing a 3- month, 15% note payable. Interest and principal are due at maturity.

2/10: Established a warranty liability for the XY-80, a new product. Sales are expected to total 1,000 units during the month. Past experience with similar products indicates that 2% of the units will require repair, with warranty costs averaging $28 per unit.

12/22: Purchased $17,000 of merchandise on account from Oregon Company, terms 2/10, n/30.

12/26: Borrowed $6,000 from First City Bank; signed a $5,120 note payable due in 60 days.

12/31: Repaired six XY-80s during the month at a total cost of $172.

12/31: Accrued 3 days of salaries at a total cost of $1500.

12/31: Accrued vacation pay amounting to 6% of December's $37,000 total wage and salary expense.

Instructions

Prepare journal entries to record the preceding transactions and events.

Determine accrued interest as of December 31, 20XX, and prepare the necessary adjusting entry or entries.

Prepare the current liability section of Visconti's December 31, 20XX balance sheet.

Below is the work I've completed. Please check my work and help me with last entry payroll expense

I'm lost on this section please assist.

File Home insert Page Layout Formulas Data Review View Tell me what you want to do RENEW YOUR SUBSCRIPTION To keep using your Office applications without interruption, please renew by Wednesday C52 28 47 Ch 7 Pb 2 48 49 25000 50 12 1 Note payable 51 12/1 Interest rate 0.15% 52 Warranty 20 28 17000 53 Purchase on account 54 Note payable 6000 55 Warranty repair 172 1500 56 Salary accural 37000 57 Vacation 58 12/26 interest 120 59 a. Prepare journal entries to record the preceding transactions and events. 60 25000- 61 ash 25000 Notes Payable 62 63 540 Warranty expense Warranty Liability 64 540 65 Merchandise 17000 Accounts Payable 17000 6000- Cash 67 Note Payable 68 6000 Warranty Liability 69 172- Cash 70 172 Salary Expense 71 1500- Salary Payable 1500 73 Payroll Expense Accrued Vacation Payable 74 Student Guidance Report Ready O CO Ask me anything