Question

At December 31, 2018, Smole Corporation's adjusted trial balance shows the following balances: (Click the icon to view more information.) EEB (Click the icon to view the balances.) Requirement 1. Prepare the current liability section of Smole Corporation's balance sheet at December 31, 2018. (If applicable, combine the Notes Payable on one line of the statement.) Data Table Smole Corporation Balance Sheet (partial) December 31, 2018 Accrued Warranty Payable $65,000 Account Amount 7% Notes Payable, due April 30, 2019 165,000 Unearned Service Revenue 56,000 Accounts Payable 230,000 Employee Income Tax Payable 24,000 281,000 Accounts Receivable Interest Payable 28,500 3% Bonds Payable, due December 31, 2023 Accumulated Depreciation 460,000 85.000 Treasury Stock Salaries Payable 170,000 90.000 195,000 15% Notes Payable, due December 31, 2019 Sales Tax Payable FICA Tax Payable 61,000 11,000 - X More Info Smole Corporation provides multi-year warranties with its products. Half of the Accrued Warranty Liability relates to warranty liabilities that will be paid in 2019, while the other half relates to warranty liabilities to be paid in 2020. The Unearned Service Revenue pertains to a service contract that will be performed during 2019. $102.000 of the 3% bonds payable due December 31, 2023, is due on December 31, 2019 Print Done hoose from any list or enter any number in the input fields and then

Answer 1

Smole Corporation
Balance Sheet (partial)
December 31,2018
Current liabilities:
Accrued Warranty Payable [65,000 x 1/2]	$32,500
Notes payable	$360,000
Unearned Service revenue	$56,000
Accounts payable	$230,000
Employee Income Tax Payable	$24,000
Interest payable	$28,500
Bonds payable	$102,000
Salaries payable	$90,000
Sales tax payable	$61,000
FICA Tax payable	$11,000
Total current liabilities	$995,000

Explanations:

Given that, Half of the Accrued warranty payable is due in 2019, Unearned revenue related to 2019 and Current portion of 3% bonds payable is $102,000. Hence these are 'current liabilities'.

Note payable
7% Notes Payable, due April 30,2019	$165,000
15% Notes payable, due December 31,2019	$195,000
Total	$360,000

Accounts receivable is come under 'Asset' side

Accumulated depreciation' is come under 'Asset' side

Treasury stock' come under 'Stockholders' equity section'