Anderson Corporation's trial balance for December 31,the end of its fiscal year,included the following accounts: The bond payable is a serial bond with equal amounts of principal maturing each year.The note payable due in 5 years has equal principal payments due each year.
The amount that should be classified as current liabilities on Anderson's December 31 balance sheet is ________.

Question

Anderson Corporation's trial balance for December 31,the end of its fiscal year,included the following accounts:  The bond payable is a serial bond with equal amounts of principal maturing each year.The note payable due in 5 years has equal principal payments due each year.
The amount that should be classified as current liabilities on Anderson's December 31 balance sheet is ________.

Quizplus · Accepted Answer

To determine the amount of current liabilities, we need to identify which liabilities are due within the next year. The accounts that meet this criteria are accounts payable ($29,000), salaries payable ($12,000), interest payable ($2,000), current portion of the serial bond ($30,000), and current portion of the note payable ($44,000). 
Therefore, the total current liabilities would be $29,000 + $12,000 + $2,000 + $30,000 + $44,000 = $117,000. Option C is the correct answer.

Anderson Corporation's Trial Balance for December 31,the End of Its