Flint 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 company's fiscal year ended February 28, 2023. Flint follows ASPE. 1. 2. Flint has $3.9 million of bonds payable outstanding at February 29, 2023, which were issued at par in 2012 and are due in 2032. The bonds carry an interest rate of 7%, payable semi-annually each June 1 and December 1. Flint 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 Apr. 1, 2023 Amount Due Interest Rate $156,000 7% Jan. 31, 2024 198,000 8% Mar. 15, 2024 492,000 6% Oct. 30, 2025 252,000 7% 3. Flint 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 the sale. The warranty liability outstanding at February 28, 2022, was $5,700. Sales of warrantied products in the year ended February 29, 2023, were $155,000. Actual warranty costs incurred during the current fiscal year are as follows: Warranty claims honoured on 2021-2022 sales Warranty claims honoured on 2022-2023 sales $5,200 900 $6,100