Assume that Pinnacle Golf Equipment completed these selected transactions during December 20X7.a. Sales of $2000000 are subject to estimated warranty cost of 3%. The estimated warranty payable at the beginning of the year was $30000 and warranty payments for the year totaled $55000.b. On December 1 Pinnacle signed a $100000 note payable that requires annual payments of $20000 plus 9% interest on the unpaid balance each December 1.c. Academy Sports a chain of sporting goods stores ordered $100000 of golf equipment. With its order Academy Sports sent a check for $100000 and Pinnacle shipped $85000 of the goods. Pinnacle will ship the remainder of the goods on January 3 20X8.d. The December payroll of $100000 is subject to employee withheld income tax of 9% and FICA tax of 8%. On December 31 Pinnacle pays employees their take-home pay and accrues all tax amounts.Instructions:Classify each liability as current or long-term and report the liability and its amount that would appear on the Pinnacle Golf Equipment balance sheet at December 31 20X7. Show a total for current liabilities.
