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Monty Corp. has manufactured a broad range of quality products since $1994.$ The operating cycle of the business is less than one year. The following information is available for the company$$s fiscal year ended February $28,2023.$ Monty follows ASPE.

$1.$ Monty has $$4\mathrm{.}0$ million of bonds payable outstanding at February $29,2023,$ which were issued at par in $2012$ and are due in $2032.$ The bonds carry an interest rate of $7\%,$ payable semi$-$annually each June $1$ and December $1.$

$2.$ Monty has several notes payable outstanding with its primary banking institution at February $29,2023.$ 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 Amount Due Interest

Rate

Apr. $1,2023$ $$168,0008\%$

Jan. $31,2024210,0009\%$

Mar. $15,2024504,0007\%$

Oct. $30,2025240,0008\%$

$1.$ Monty 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 $1\%$ of sales being returned in the $12$ months following the sale, and a cost of $1\mathrm{.}5\%$ of sales being returned in months $13$ to $24$ following the sale. The warranty liability outstanding at February $28,2022,$ was $$6,000.$ Sales of warrantied products in the year ended February $29,2023,$ were $$157,000.$ Actual warranty costs incurred during the current fiscal year are as follows:

Warranty claims honoured on $2021-2022$ sales $$4,700$

Warranty claims honoured on $2022-2023$ sales

$1,400$

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