Question & Answer: Prepare the current liabilities section of Mariano Corporation's balance sheet as of December 31, 2014. a)…..

Prepare the current liabilities section of Mariano Corporation’s balance sheet as of December 31, 2014. a) Mariano Corporation sells 10,000 units of inventory during the first year of operations for $500 each. The selling price includes a one-year warranty on parts. It is estimated that 3% of the units will be defective and that repair costs are estimated to be $50 per unit. In the year of sale, warranty contracts are honored on 80 units for a total cost of $4,000. b) Mariano has total cash sales for the month of $36,000 plus sales tax rate is 5%. c) On November 30, Mariano Corporation signs a $100,000, 9%, 4-month note. d) Mariano sells 60,000 year-long service subscriptions in March. The subscription price is $15 each. The subscriptions start in April. e) The company’s weekly payroll of $12,000 is paid on Friday. December 31 is on Tuesday this year.