Joan's Golf Shop Ltd. had the following transactions involving current liabilities in its first year of operations: 1. The company ordered golf equipment from suppliers for $556,000, on credit. It paid $510,000 to suppliers during the year. 2. The shop has seven employees, who earn gross wages of $310,000 for the year. From this, the company deducted 21% for income taxes, $15,300 in CPP premiums, and $5,050 in El premiums before distributing the cheques to the staff. As an employer, Joan was also required to match the employees' CPP premiums and pay $7,070 in El premiums. Eleven-twelfths of the amounts due to the government (all except the last month) were paid before the end of the year. 3. The company gives customers a one-year warranty against defects on golf clubs. Management estimated that warranty costs would total 2% of sales. Sales of golf clubs for the year were $1,000,000. During the year, the company spent $13,400 on refunds under the warranty. 4. Some customers order very expensive, custom-made golf clubs. In these cases, the company requires them to pay a deposit of 50% of the selling price when the order is placed. During the year, deposits totalling $23,000 were received for custom orders. None of these orders have been delivered yet. No. Account and explanation Debit Credit 1. Inventory 556,000 Accounts Payable 556,000 (To record purchase of inventory on account.) Accounts Payable 510,000 Cash 510,000 (To record payment to supplier.) 2. Wages Expense 310,000 Employee Income Taxes Payable 65100 CPP Payable 15,300 El Payable 5,050 Cash 224550 (To record payment to the staff.) Wages Expense CPP Payable El Payable (To record employer's liabilities.) Employee Income Taxes Payable CPP Payable El Payable Cash (To record payment to the government.) 3. Warranty Expense Unearned Warranty Revenue (To record warranty expense.) Unearned Warranty Revenue Cash (To record warranty payments.) 4. Cash Unearned Revenue Prepare the current liabilities section of the statement of financial position as it would appear at the end of the year. (Round answers to 0 decimal places, e.g. 14,674.) Current Liabilities: $