13 Feb (Learning Objective 1: Measure and report current
(Learning Objective 1: Measure and report current liabilities) Merridian Marine experienced these events during the current year.a. December revenue totaled $145,000; and, in addition, Merridian collected sales tax of 7%. The tax amount will be sent to the state of Mississippi early in January.b. On August 31, Merridian signed a six-month, 6% note payable to purchase a boat costing $76,000. The note requires payment of principal and interest at maturity.c. On August 31, Merridian received cash of $3,600 in advance for service revenue. This revenue will be earned evenly over six months.d. Revenues of $850,000 were covered by Merridian’s service warranty. At January 1, estimated warranty payable was $9,700. During the year, Merridian recorded warranty expense of $34,000 and paid warranty claims of $31,100.e. Merridian owes $90,000 on a long-term note payable. At December 31, 4% interest for the year plus $30,000 of this principal are payable within one year.