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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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