Question

At December​ 31,2018​,Cresent Corporation's adjusted trial balance shows the following​ balances:

Accrued Warranty Payable $57,000 77​% Notes​ Payable, due April​ 30, 20192019 170,000 Unearned Service Revenue 58,000 Accounts Payable 215,000 Employee Income Tax Payable 030,000 Accounts Receivable 288,000 Interest Payable 27,000 66​% Bonds​ Payable, due December​ 31, 20232023 480,000 Accumulated Depreciation 83,000 Treasury Stock 176,000 Salaries Payable 90,000 1515​% Notes​ Payable, due December​ 31, 20192019 190,000 Sales Tax Payable 68,000 FICA Tax Payable 5,000

CresentCresent

Corporation provides​ multi-year warranties with its products. Half of the Accrued Warranty Liability relates to warranty liabilities that will be paid in

20192019​,

while the other half relates to warranty liabilities to be paid in

20202020.

The Unearned Service Revenue pertains to a service contract that will be performed during 2019 $108,000 of the 66​%bonds payable due December​ 31,2023​,is due on December​ 31,2019.

1. Prepare the current liability section of Cresent​Corporation's balance sheet at December 31 comma 2018 December 31, 2018.​(If applicable, combine the Notes Payable on one line of the​ statement.)

Cresent Corporation

Balance Sheet (partial)

December 31, 2018

Account

Amount

Answer 1

Current liabilities include obligations due within one year or normal operating cycle of a company when it is longer than one year. Obligations other than current liabilities are classified as long-term liabilities. Examples of current liabilities include accounts payable, short-term notes payable, current portion of long-term debt, unearned revenues, payroll liabilities and other accrued liabilities.

Prepare the current liabilities section of balance sheet as follows:

CC Inc
Balance Sheet (Partial)
December 31, 2018
Liabilities and Stockholders' Equity	Amount	Amount
Current Liabilities:
Notes Payable (Short-term) ($170,000 + $190,000)	$360,000
Accounts Payable	$215,000
Bonds payable (Current Portion)	$108,000
Salaries Payable	$90,000
Sales Tax Payable	$68,000
Unearned Service Revenue	$58,000
Employee Income Tax Payable	$30,000
Accrued Warranty Payable ($57,000 × 50%)	$28,500
Interest Payable	$27,000
FICA Tax Payable	$5,000
Total current liabilities		$989,500