Question

A company reported the following information at December 31, Year 1: Accounts payable $ 4,690 Accounts receivable $ 9,540 Cash $ 25,390 Common Stock $ 91,900 Equipment $ 51,400 Inventory $ 33,100 Notes Payable due December 31, Year 3 $ 2,690 Retained Earnings, December 31, Year 1 $ 14,280 Wages payable $ 5,870 What is the amount of current liabilities on the classified balance sheet?

Answer 1

$13,250

Step-by-step explanation:

Current liabilities can be defined as the amount of money incurred by a company. This debt must be repaid back within a period of one year.

From the question above a company reported the following information on its classified balance sheet at December 31.

Account payable= $4,690

Account receivable= $9,540

Cash= $25,390

Common stock= $91,900

Equipment= $51,400

Inventory= $33,100

Notes payable= $2,690

Retained earnings= $14,280

Wages payable= $5,870

The amount of current liabilities can be calculated by adding up the different debts incurred by the company

Account payable+Notes payable+ wages payable

= $4,690+$2,690+$5,870

= $13,250

Hence the amount of current liabilities recorded on the classified balance sheet is $13,250