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30 July, 03:41

Mill Co.'s trial balance included the following account balances at December 31, Year 6:

Accounts payable: $15,000

Bonds payable, due Year 7: $25,000

Discount on bonds payable, due Year 7: $3,000

Dividends payable 1/31/Year 7: $8,000

Notes payable, due Year 8: $20,000

What amounts should be included in the current liability section of Mill's December 31, Year 6, balance sheet?

A) $71,000

B) $51,000

C) $65,000

D) $45,000

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  1. 30 July, 04:03
    0
    D) $45,000

    Explanation:

    The computation of the amount which is included in the current liability section is shown below:

    = Account payable balance + bonds payable - discount on bonds payable + dividend payable

    = $15,000 + $25,000 - $3,000 + $8,000

    = $45,000

    The current liability is that liability which is arise for one year. Since, the notes payable is a long term liabilities so we do not consider in the computation part.
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