Question

Cash $30400 10500 129000 CORONADO'S FURNITURE OUTLET LTD. Statement of Financial Position December 31, 2022 $8100 Accounts payable 19100 Salaries payable 1000 Mortgage payable 177000 Total liabilities 96000 Shareholders' equity Common shares 78900 Retained earnings Total shareholders' equity Accounts receivable Supplies Inventory Land Building Less: Accum. Depreciation Trademark Less: Accum. Depreciation Total assets $169900 $99000 $147000 20100 93000 $40200 240000 10400 29800 $409900 Total liabilities and shareholders' equity $409900 The dollar amount of current liabilities is O $ 205200. O $ 409900. O $ 40900. O $ 30400.

Answer 1

Current Liabilities are those which the company expects to pay in the short term. Current Liabilities are generally payable within one financial year or a normal operating cycle.

Accounts Payable and Salaries Payable are considered as Current Liabilities. Whereas, Mortgage Payable is due in the long term, and thus do not form part of Current Liabilities.

Amount of Current Liabilities in given example:

Current Liabilities = Accounts Payable + Salaries Payable = $30,400 + $10,500 = $40,900