Younger Online Company has the following liability accounts after posting adjust

Question

Younger Online Company has the following liability accounts after posting adjusting entries: Accounts Payable $73,500, Unearned Ticket Revenue $27,000, Warranty Liability $30,000, Interest Payable $8,500, Mortgage Payable $122,000, Notes Payable $83,000, and Sales Taxes Payable $12,000. Assume the company’s operating cycle is less than 1 year, ticket revenue will be recognized within 1 year, warranty costs are expected to be incurred within 1 year, and the notes mature in 3 years.

Prepare the current liabilities section of the balance sheet, assuming $35,500 of the mortgage is payable next year.

Explanation / Answer

Younger Online Company Balance Sheet (partial) Details Amt $ Current Liabilities Accounts Payable                    73,500 Unearned Tocket Revenue                  27,000 Warranty Liability                  30,000 Interest Payable                     8,500 Mortgage Payable-Current Maturity                    35,500 Sales Tax Payable                  12,000 Total Current Liabilities                186,500

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