Zendaya Corp. has manufactured a broad range of quality products since 1996. The operating cycle of the business is less than one year. The following information is available for the company's fiscal year ended May 31, 2022. Zendaya follows ASPE. 1 Zendaya has two notes payable outstanding with its primary banking institution at May 31, 2022. 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 Oct. 31, 2024 Amount Due Interest Rate 8% 6% $108,000 $379,000 2 Zendaya 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 1.5% of sales being returned in the 12 months following the sale, and a cost of 2% of sales being returned in months 13 to 24 following the sale. The warranty liability outstanding at May 31, 2021, was $7,500. Sales of warrantied products in the year ended May 31, 2021, were $311,700. Actual warranty costs incurred during the current fiscal year are as follows: Warranty claims honoured on 2020-2021 sales Warranty claims honoured on 2021-2022 sales $6,100 3,050 $9,150 3 Zendaya sells gift cards to its customers. The company does not set a redemption date and customers can use their cards at any time. At June 1, 2021, Zendaya had a balance outstanding of $67,000 in its Unearned Revenue account. Zendaya received $41,800 in cash for gift cards purchased during the current year, and $77,100 in redemptions took place during the year. Based on past experience, 11% of customer gift card balances never get redeemed. At the end of each year, Zendaya recognizes 15% of the opening balance of Unearned Revenue as earned during the year. Required 1 Prepare the current liability section of the May 31, 2022 balance sheet for Zendaya Corp. Identify any amounts which require separate disclosure under ASPE. (8 marks) Round to the nearest dollar.