Current Liabilities Bon Nebo Co. sold 12,000 annual subscriptions of Bjorn for $45 during December 20Y5. These new subscribers will receive monthly issues, beginning in January 20Y6. In addition, the business had taxable income of $340,000 during the first calendar quarter of 20Y6. The federal tax rate is 38%. A quarterly tax payment will be made on April 12, 20Y6. Prepare the current liabilities section of the balance sheet for Bon Nebo Co. on March 31, 20Y6.

Question

Shane Short

Business

9 May, 20:51

Current Liabilities Bon Nebo Co. sold 12,000 annual subscriptions of Bjorn for $45 during December 20Y5. These new subscribers will receive monthly issues, beginning in January 20Y6. In addition, the business had taxable income of $340,000 during the first calendar quarter of 20Y6. The federal tax rate is 38%. A quarterly tax payment will be made on April 12, 20Y6. Prepare the current liabilities section of the balance sheet for Bon Nebo Co. on March 31, 20Y6.

+1

Answers (1)

Know the Answer?

Jordyn Heath · Answer 1

Answer and Explanation:

The preparation of the current liabilities section of the balance sheet is presented below:

Federal Income Taxes Payable $129,200

($340,000 * 38%)

Add: Advances on magazine subscriptions $405,000

(12, 000 * $45 * 9 : 12)

Total Current Liabilities $534,200

We simply added the advances to the federal income tax payable so that the total amount could come