Current liabilities Current LiabilitiesBon Nebo Co. sold 15,500 annual subscriptions of Magazine 20XX for $59 during December 20Y8. These new subscribers will receivemonthly issues, beginning in January 20Y9. In addition, the business had taxable income of $576,000 during the first calendar quarter of20Y9. The federal tax rate is 40%. A quarterly tax payment will be made on April 12, 20Y9.Prepare the Current Liabilities section of the balance sheet for Bon Nebo Co. on March 31, 20Y9.Bon Nebo Co.Current Liabilities Section of Balance SheetMarch 31, 20Y9Federal income taxes payable576,000 xAdvances on magazine subscriptionsTotal current liabilitiesFeedbackV Check My WorkPay attention to the dates given in the exercise.5:56 AM31%D -4°F12/17/2021F102$&4.6.7.8.R.YB.INM

Federal income tax payable = taxable income x tax rate = 576000 x 40% = $230,400Total amount received from subscription = no. of subscription sold x price per subscription = 15500 x $59 = $914,500 Current Liabilities section of Balance SheetMarch 31, 20Y9 Federal income tax payable $230,400 Advances on magazine subscriptions (914500*3/12) 685875 Total Current Liabilities $916275