On March 1, 2014, borrowed $48,000 cash from the local bank. The note had a 8 pe

Question

On March 1, 2014, borrowed $48,000 cash from the local bank. The note had a 8 percent interest rate and was due on September 1, 2014.

Aliceville provides a 90-day warranty on the merchandise sold. The warranty expense is estimated to be 4 percent of sales.

On October 1, 2014, borrowed $45,000 cash from the local bank. The note had a 8 percent interest rate and a one-year term to maturity.

A customer has filed a lawsuit against Aliceville for $80,000 for breach of contract. The company attorney does not believe the suit has merit.

1.) Prepare the current liabilities section of the balance sheet at December 31, 2014. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

Explanation / Answer

amt borrowed from bank    48,000 Paid interest accrued      1,920 Paid Current liabilities: Sales tax payable      3,600 ((230000-185000)*8%) Loan    45,000 interest accrued          900 Total current liabilities    49,500

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