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Strong Company and Sunner Corporation

Accounts Payable 69,000
Notes Payable 3- month 90,000
Accumulated Deprecation - Equipment 14,000
Notes Payable, 5- year, 8% 75,000
Payroll Tax Expense 6,000
Interest Payable 5,000
Mortgage Payable 180,000
Sales Tax Payable 23,000

(a) Prepare the current liability section of Strong Company's balance sheet assuming 15,000 of the mortgage is payable next year.
(b) Comment on Strong's liquidity , assuming total current assets are $ 450,000

The corporate charter of Sunner Corporation allows the issuance of a maximum of 3,000,000 shares of $1 par value common stock. During its first three years of operation,
Sunner issued 1,560,000 shares at $15 per share. It later acquired 60,000 of these shares as treasury stock for $25 per share.

(a) How many shares were authorized?
(b) How many shares were issued/
(c) How many shares are outstanding?
(d) What is the balance of the Common Stock account?
(e) What is the balance of the Treasury Stock account?

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Accounts Payable 69,000
Notes Payable 3- month 90,000
Accumulated Deprecation - Equipment 14,000
Notes Payable, 5- year, 8% 75,000
Payroll Tax Expense 6,000
Interest Payable 5,000
Mortgage Payable ...

Solution Summary

This solution is comprised of a detailed explanation and calculation to prepare the current liability section of Strong Company's balance sheet assuming 15,000 of the mortgage is payable next year and comment on Strong's liquidity and answer regarding Sunner Corporation's share issued.

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