Question

Janson Corporation Co.'s trial balance included the following account balances at December 31, 2016: Accounts payable $26,700 Bond payable, due 2025 23,800 Salaries payable 17,800 Note payable, due 2017 21,700 Note payable, due 2021 41,700 What amount should be included in the current liability section of Janson's December 31, 2016, balance sheet?

Answer 1

Answer: $ 66,200

Explanation:

Payables which are due for payment within a one year period from the balance sheet date are considered as current liability.  The amounts to be considered in the current liability section of the balance sheet are as follows:

Accounts Payable           $ 26,700

Salaries Payable              $ 17,800

Note payable Due 2017  $ 21,700

Total Payables in CL        $ 66,200

The Bond payable due in 2025 of $ 23,800 and Note Payable due 2021 of $ 41,700 are not considered as they are payable beyond one year from date of balance sheet