Final answer:
To prepare the current liabilities section of Pronghorn Company's balance sheet, include Accounts Payable, Salaries and Wages Payable, Interest Payable, Income Taxes Payable, and Unearned Rent Revenue. Pension Liability and Bonds Payable are generally excluded unless they are due within one year.
Step-by-step explanation:
The question asks to prepare the current liabilities section of the balance sheet for Pronghorn Company based on the provided trial balance amounts as of December 31, 2025. Current liabilities are financial obligations of a business that are due to be settled within one year of the balance sheet date. Items classified as current liabilities typically include accounts payable, short-term loans, taxes owed, unearned revenues, and other types of accrued expenses.
In the context of this question, the current liabilities to be included on the balance sheet would generally exclude long-term liabilities such as Bonds Payable and Discount on Bonds Payable, but would include the following line items:
- Accounts Payable: $221,000
- Salaries and Wages Payable: $32,500
- Interest Payable: $14,650
- Income Taxes Payable: $29,340
- Unearned Rent Revenue: $49,100
Pension Liabilities and Bonds Payable are not typically considered current liabilities unless they are due within the next year. The Discount on Bonds Payable is a contra liability and is typically subtracted from Bonds Payable on the balance sheet, without being recognized as a separate current liability.