The following selected transactions were taken from the books of Aliceville Company for 2014:

1.
On March 1, 2014, borrowed $48,000 cash from the local bank. The note had a 7 percent interest rate and was due on September 1, 2014.

2. Cash sales for the year amounted to $225,000 plus sales tax at the rate of 7 percent.

3.
Aliceville provides a 90-day warranty on the merchandise sold. The warranty expense is estimated to be 3 percent of sales.

4. Paid the sales tax to the state sales tax agency on $200,000 of the sales.

5. Paid the note due on September 1 and the related interest.

6.
On October 1, 2014, borrowed $50,000 cash from the local bank. The note had a 10 percent interest rate and a one-year term to maturity.

7. Paid $3,200 in warranty repairs.

8.
A customer has filed a lawsuit against Aliceville for $100,000 for breach of contract. The company attorney does not believe the suit has merit.

Correct

Cash paid for interest $1,680

Correct

Warranty expense $6,750

Do not know the interest expense.

What amount of interest expense is reported on Alicevilleâs income statement for the year?

Interest expense

Do not know balance sheet.

Prepare the current liabilities section of the balance sheet at December 31, 2014. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

ALICEVILLE COMPANY

Balance Sheet (Partial)

As of December 31, 2014

Current liabilities

Notes payable

Sales tax payable

Interest payable

Warranty payable

Total current liabilities $0

Question

The following selected transactions were taken from the books of Aliceville Company for 2014:

1.	On March 1, 2014, borrowed $48,000 cash from the local bank. The note had a 7 percent interest rate and was due on September 1, 2014.
2.	Cash sales for the year amounted to $225,000 plus sales tax at the rate of 7 percent.
3.	Aliceville provides a 90-day warranty on the merchandise sold. The warranty expense is estimated to be 3 percent of sales.
4.	Paid the sales tax to the state sales tax agency on $200,000 of the sales.
5.	Paid the note due on September 1 and the related interest.
6.	On October 1, 2014, borrowed $50,000 cash from the local bank. The note had a 10 percent interest rate and a one-year term to maturity.
7.	Paid $3,200 in warranty repairs.
8.	A customer has filed a lawsuit against Aliceville for $100,000 for breach of contract. The company attorney does not believe the suit has merit.

Correct

Cash paid for interest

$1,680

Correct

Warranty expense

$6,750

Do not know the interest expense.

What amount of interest expense is reported on Alicevilleâs income statement for the year?

Interest expense

Do not know balance sheet.

Prepare the current liabilities section of the balance sheet at December 31, 2014. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

1.	The business was started when Midsouth received $48,500 from theissue of common stock.
2.	Purchased$176,000 of merchandise on account.
3.	Sold merchandise for $197,500 cash (not including sales tax).Sales tax of 7 percent is collected when the merchandise is sold.The merchandise had a cost of $122,500.
4.	Provided a six-month warranty on the merchandise sold. Based onindustry estimates, the warranty claims would amount to 4 percentof merchandise sales.
5.	Paid the salestax to the state agency on $147,500 of the sales.
6.	On September 1, 2014, borrowed $19,500 from the local bank. Thenote had a 6 percent interest rate and matures on March 1,2015.
7.	Paid $5,600 forwarranty repairs during the year.
8.	Paid operatingexpenses of $53,000 for the year.
9.	Paid $126,000 ofaccounts payable.
10.	Recorded accrued interest at the end of the year. What is the total amount of current liabilities at December 31,2014?

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