Question

The following information is for Bright Eyes Auto Supplies: Bright Eyes Auto Supplies Balance Sheet December 31, 2015 Cash $ 40,000 Accounts Payable $ 130,000 Prepaid Insurance 80,000 Salaries and Wages Payable 50,000 Accounts Receivable 100,000 Mortgage Payable 150,000 Inventory 140,000 Total Liabilities 330,000 Land Held for Investment 180,000 Land 250,000 Buildings $200,000 Common Stock $400,000 Less Accumulated Retained Earnings 340,000 740,000 Depreciation (60,000) 140,000 Trademark 140,000 Total Assets $1,070,000 Total Liabilities and Stockholders’ Equity $1,070,000 The total dollar amount of liabilities to be classified as current liabilities is:_________.

A. $180,000.
B. $130,000.
C. $50,000.
D. $330,000.

Answer 1

$180,000

Step-by-step explanation:

Relevant Data provided to compute the total current liabilities is here below:-

Accounts payable = $130,000

Salaries and wages payable = $50,000

The computation of total dollar amount of liabilities is shown below:-

Total current liabilities = Accounts payable + Salaries and wages payable

= $130,000 + $50,000

= $180,000

Therefore for computing the total current liabilities we simply added the accounts payable and salaries and wages payable.