Solution-Create the current liabilities section of the

Create the current liabilities section of the balance sheet

Assignment Help Financial Accounting

Reference no: EM132657761

Fun App Company has the following liability accounts after posting adjusting entries:

Accounts Payable $77,000,

Unearned Ticket Revenue $36,000,

Warranty Liability $25,000,

Interest Payable $10,000,

Mortgage Payable $150,000,

Notes Payable $100,000,

Sales Taxes Payable $14,000.

Assume the company's operating cycle is less than 1 year, ticket revenue will be recognized within 1 year, warranty costs are expected to be incurred within 1 year, and the notes mature in 3 years.

Instructions

Question (a) Prepare the current liabilities section of the balance sheet, assuming $40,000 of the mortgage is payable next year.

Question (b) Comment on Fun App Company's liquidity, assuming total current assets are $350,000.

Reference no: EM132657761

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Create the current liabilities section of the balance sheet

Reference no: EM132657761

Reference no: EM132657761

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