You were hired as a junior accountant at Byron Manufacturing Company. The following transactions relate to the company’s operations for the year 2020.

A. On February 8, the company purchased raw materials from Cetal Company for $80,000 with related terms 2/10, n/30. Byron paid for this purchase on February 15. Purchases and accounts payable are recorded at net amounts.

B. On March 1, the company purchased equipment for $500,000 from Machines and More Company. It paid $100,000 in cash and used a one-year, 7% note for the balance.

C. On June 30, the company borrowed $200,000, by signing a one-year zero-interest bearing $240,000 note at FSC Bank.

D. The company sells smart speakers at an average price of $15000. Each customer is offered a separate 5-year service type warranty contract of $1500. With this contract, the company would carry out periodic services and replace defective parts. During 2020, the company sold 40 smart speakers and 30 warranty contracts for cash. It estimates the 5-year warranty costs as $800 for parts and $500 for labour and accounts for warranties separately. Assume sales occurred on December 31, 2020, and straight-line recognition of warranty revenues occurs.

Required

i. Indicate the manner in which the above transactions should be reflected in the Current Liabilities section of Byron Manufacturing Company's December 31, 2020 Statement of Financial Position