$$\begin{array} { l r l r }
\text { Retained earnings } & \$ 370,000 & \text { Notes payable (due in 6 years) } & \text { \$120,000 } \
\text { Accumulated depreciation } & 130,000 & \text { Salaries payable } & 10,000 \
\text { Income taxes payable } & 240,000 & \text { Supplies } & 20,000 \
\text { Plant } & 480,000 & \text { Accounts payable } & 360,000 \
\text { Cash } & 110,000 & \text { Inventory } & 330,000 \
\text { Accounts receivable } & 350,000 & \text { Land } & 500,000 \
\text { Common shares } & 600,000 & \text { Prepaid insurance } & 40,000
\end{array}$$
-Refer to Baloon-E-Tunes.Prepare the current liabilities section of the balance sheet at December 31.You may omit the heading.If the amount of current liabilities were larger,what effect would this have on the current ratio?

Question

$$\begin{array} { l r l r } 
\text { Retained earnings } & \$ 370,000 & \text { Notes payable (due in 6 years) } & \text { \$120,000 } \
\text { Accumulated depreciation } & 130,000 & \text { Salaries payable } & 10,000 \
\text { Income taxes payable } & 240,000 & \text { Supplies } & 20,000 \
\text { Plant } & 480,000 & \text { Accounts payable } & 360,000 \
\text { Cash } & 110,000 & \text { Inventory } & 330,000 \
\text { Accounts receivable } & 350,000 & \text { Land } & 500,000 \
\text { Common shares } & 600,000 & \text { Prepaid insurance } & 40,000
\end{array}$$
-Refer to Baloon-E-Tunes.Prepare the current liabilities section of the balance sheet at December 31.You may omit the heading.If the amount of current liabilities were larger,what effect would this have on the current ratio?

Quizplus · Accepted Answer

The Answer of $$\begin{array} { l r l r } 
\text { Retained earnings } & \$ 370,000 & \text { Notes payable (due in 6 years) } & \text { \$120,000 } \
\text { Accumulated depreciation } & 130,000 & \text { Salaries payable } & 10,000 \
\text { Income taxes payable } & 240,000 & \text { Supplies } & 20,000 \
\text { Plant } & 480,000 & \text { Accounts payable } & 360,000 \
\text { Cash } & 110,000 & \text { Inventory } & 330,000 \
\text { Accounts receivable } & 350,000 & \text { Land } & 500,000 \
\text { Common shares } & 600,000 & \text { Prepaid insurance } & 40,000
\end{array}$$
-Refer to Baloon-E-Tunes.Prepare the current liabilities section of the balance sheet at December 31.You may omit the heading.If the amount of current liabilities were larger,what effect would this have on the current ratio?