Glover Corporation\'s trial balance for December 31, the end of its fiscal year,
ID: 2392294 • Letter: G
Question
Glover Corporation's trial balance for December 31, the end of its fiscal year, included the following:
Accounts Payable
35,000
Dividends Payable
20,000
Bonds Payable, maturing in 9 years
36,000
Salaries Payable
8,000
Notes Payable, due in 1 year
30,000
Notes Payable, due in 5 years
60,000
The amount that should be classified as current liabilities in the December 31 balance sheet
is ________.
A.
153,000
B.
93,000
C.
63,000
D.
73,000
Glover Corporation's trial balance for December 31, the end of its fiscal year, included the following:
Accounts Payable
35,000
Dividends Payable
20,000
Bonds Payable, maturing in 9 years
36,000
Salaries Payable
8,000
Notes Payable, due in 1 year
30,000
Notes Payable, due in 5 years
60,000
The amount that should be classified as current liabilities in the December 31 balance sheet
is ________.
A.
153,000
B.
93,000
C.
63,000
D.
73,000
Explanation / Answer
Answer:
Option B i.e. $93,000 is Correct.
Current Liabilities = Accounts Payable + Dividend Payable + Salaries Payable + Notes Payable, due in Year
Current Liabilities, December 31 = $35,000 + $20,000 + $8,000 + $30,000
Current Liabilities, December 31 = $93,000
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