Flounder Corp. has the following account balances at December 31, 2021: Notes payable ($50,000 due after 12/31/22) $84,000 Unearned service revenue 59,000 Mortgage Payable ($76,000 due in 2022) 210,000 Salaries payable 27,000 Accounts payable 53,000 In addition, Flounder is involved in a lawsuit. Legal counsel feels it is probable Flounder will pay damages of $21,000 in 2022. Flounder records provisions related to litigations in the account Litigation Liability. Prepare the current liabilities section of Flounder’s December 31, 2021, balance sheet.
Flounder Corp. has the following account balances at December 31, 2021: Notes payable ($50,000 due after 12/31/22) $84,000 Unearned service revenue 59,000 Mortgage Payable ($76,000 due in 2022) 210,000 Salaries payable 27,000 Accounts payable 53,000 In addition, Flounder is involved in a lawsuit. Legal counsel feels it is probable Flounder will pay damages of $21,000 in 2022. Flounder records provisions related to litigations in the account Litigation Liability. Prepare the current liabilities section of Flounder’s December 31, 2021, balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Flounder Corp. has the following account balances at December 31, 2021:
| Notes payable ($50,000 due after 12/31/22) | $84,000 | |
| Unearned service revenue | 59,000 | |
| Mortgage Payable ($76,000 due in 2022) | 210,000 | |
| Salaries payable | 27,000 | |
| Accounts payable | 53,000 |
In addition, Flounder is involved in a lawsuit. Legal counsel feels it is probable Flounder will pay damages of $21,000 in 2022. Flounder records provisions related to litigations in the account Litigation Liability.
Prepare the current liabilities section of Flounder’s December 31, 2021,
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