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.
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The solution prepares the current liability section.
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Current Liabilities
Accounts Payable $ 50,000
Notes Payable, 3-month $ ...
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