Songbird Corporation's trial balance included the following account balances at December 31,2014:

What amount should be included in the current liability section of Songbird's December 31,2014,balance sheet?
A)$135,000
B)$153,000
C)$195,000
D)$234,000

Question

Songbird Corporation's trial balance included the following account balances at December 31,2014:

What amount should be included in the current liability section of Songbird's December 31,2014,balance sheet?
A)$135,000 
B)$153,000 
C)$195,000 
D)$234,000

Quizplus · Accepted Answer

The accounts payable balance of $125,000 and the unearned revenue balance of $10,000 are both current liabilities and should be included in the current liability section of the balance sheet. Therefore, the total current liabilities is $125,000 + $10,000 = $135,000. The other accounts listed are either long-term liabilities or equity accounts and should not be included in the current liability section.

Songbird Corporation's Trial Balance Included the Following Account Balances at December