Question

Jenson Corporation Co.'s trial balance included the following account balances at December 31, 2016:

Accounts payable $25,000
Bond payable, due 2025 22,000
Salaries payable 16,000
Note payable, due 2017 20,000
Note payable, due 2021 40,000
What amount should be included in the current liability section of Jenson's December 31, 2016 balance sheet?
A. $63,000
B. $41,000
C. $61,000
D. $101,000

Answer 1

What amount should be included in the current liability section of Jenson's December 31, 2016 balance sheet?

C. $61,000

Step-by-step explanation:

The current Liabilities corresponds to those accounts with a liquidity speed less than one year, which means it's possible to get/paid cash from these accounts before a year period.

In these case the accounts which are included in the current liabilities are

$25,000 Accounts Payable

$20,000 Note Payable

$16,000 Salaries Payable

$61,000 TOTAL CURRENT LIABILITIES

These other accounts due in more than one year because of that these are included in the Non Current Liabilities.

$22,000 Bonds Payable

$40,000 Notes Payable

$62,000 TOTAL NONCURRENT LIABILITIES