Question

CHECK FIGURE: Total current liabilities $305,000 The Creative Electronics Company shows the following selected adjusted account balances as at December 31, 2017: Accounts Payable Salaries Payable.. Accumulated Depreciation, Equipment.23,000 Estimated Warranty Liability Mortgage Payable ..275,000 Notes Payable, 6 months. 21,000 $ 95,000 136,000 Required Prepare the current liability section of Creative's balance sheet. $35,000 in principal is due dur- ing 2018 regarding the mortgage payable. For simplicity, order the liabilities from largest to smallest. 70

please full calculation and explanation

Answer 1

Current liability section of creative electronics company

Salary Payable . $. 136000

Accounts payable. $ . 95000

Mortgage payable. $. 35000

Notes payable . $. 21000

Warranty liabilities. $. 18000

Total. $ . 305000

Out of $275000 ,$35000 mortgage payable is due with in one year and it is treated as current and rest will be considered as long term liability.

Accumulated depreciation is not part of current liability.