of plastic pipe for the construction industry and located in Red Deer, Alberta, faced the following liability situations at June 30, 2017, the end of the company's fiscal year. Show how Estelle Play (Click on the icon to view the situations.) a. Long-term debt totals $7.5 million and is payable in annual instalments of $1.5 million each. The interest rate on the debt is 8%, and the interest is paid each December 31. (Enter all amounts in whole dollars. If a box is not used in the table, leave the box empty: do not select a label or enter a zero.) Liabilities at June 30, 2017: Current liabilities: Long-term liabilities: b. Salary expense for the last payroll period of the year was $80,000. Of this amount, employees' income tax of $30,000 was withheld, and other withholdings and employee benefits were $6,900. These payroll amounts will be paid in early July (Enter all amounts in whole dollars. If a box la not used in the table, leave the box empty: do not select a label or enter a zero.) Liabilities at June 30, 2017: Current liabilities: X i - Situations Long term liabilities: a. Long-term debt totals $7.5 million and is payable in annual instalments of S1.5 million each. The interest rate on the debt is 8%, and the interest is paid each December 31. Salary expense for the last payroll period of the year was $80,000. Of this amount employees' income tax af S30,000 was withheld, and other withholdings and employee benefits were $6,900. These payroll amounts will be paid in early July. c. Since the last reporting period. GST of $300,000 had been collected, and ITCs of $94.000 had been earned. d. On fiscal year 2017 sales of S33 million, management estimates warranty expense of 5%. One year ago, at June 30, 2016, Estimated Warranty Liability stood at $240,000. Warranty payments were $280.000 during the year ended June 30, 2017 C. Since the last reporting period, GST of $300,000 had been collected, and ITCs of $94.000 had been earned. (Enter all amounts in whole dollars. If a box is not used in the table, leave the box empty: do not select a label or enter a zero.) Liabilities at June 30, 2017: Current liabilities: Print Done Long-term liabilities: d. On fiscal year 2017 sales of 533 million, management estimates warranty expense of 5%. One year ago, at June 30, 2016. Estimated Warranty Liability stood at $240,000. Warranty payments were $280,000 during the year ended June 30, 2017. (Enter all amounts in whole dollars. If a box is not used in the table, leave the box empty: do not select a label or enter a zero.) Liabilities at June 30, 2017: Current liabilities: Long term liabilities
