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    Prepare the current liability section

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    Sample Company has the following selected accounts after posting adjusting entries:
    Accounts Payable $ 50,000
    Notes Payable, 3-month 80,000
    Accumulated Depreciation?Equipment 14,000
    Notes Payable, 5-year, 8% 30,000
    Payroll Tax Expense 6,000
    Interest Payable 3,000
    Mortgage Payable 200,000
    Sales Tax Payable 16,000

    Instructions
    (a) Prepare the current liability section of Sample Company's balance sheet, assuming $20,000 of the mortgage is payable next year.
    (b) Comment on Sample's liquidity, assuming total current assets are $320,000.

    © BrainMass Inc. brainmass.com June 3, 2020, 8:10 pm ad1c9bdddf
    https://brainmass.com/business/current-assets/prepare-current-liability-section-126478

    Solution Preview

    Current Liabilities
    Accounts Payable $ 50,000
    Notes Payable, 3-month $ ...

    Solution Summary

    The solution prepares the current liability section.

    $2.19

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