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Prepare the current liability section of dragnet corporation

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Reference no: EM132420284

Dragnet Corporation has the following selected accounts at December 31, 2018 after posting adjusting entries:

Accounts Payable..... 56,400

Accumulated Depreciation - Equipment ... 24,000

Accounts Receivable ... 67,500

Bank Loan Payable, 3-month ... 165,000

GST Payable ... 14,000

Notes Payable, due 2025, 4% ... 85,000

Employee Benefits Expense ... 8,000

Interest Payable ... 6,600

Mortgage Payable ... 425,000

Salaries Payable ... 23,000

PART A: Prepare the current liability section of Dragnet Corporation's statement of financial position, assuming $25,000 of the mortgage is payable next year.

PART B: Comment on Dragnet's liquidity, assuming total current assets are $261,000. Support your comment with calculations

Reference no: EM132420284

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