Liabilities on the Balance Sheet For each of the following situations, indicate the amount shown as current or long-term liability on the balance sheet of Anchor, Inc., at December 31: a. Anchor’s general ledger shows a credit balance of $150,000 in Long-Term Notes Payable. Of the amount, a $30,000 installment becomes due on June 30 of the following year. b. Anchor estimates its unpaid income tax liability for the current year is $40,800; it plans to pay this amount in March of the following year. c. On December 31, Anchor received a $18,000 invoice for merchandise shipped on December 28. The merchandise has not yet been received. The merchandise was shipped F.O.B. shipping point. d. During the year, Anchor collected $12,600 of state sales tax. At year-end, it has not yet remitted $1,680 of these taxes to the state department of revenue. e. On December 31, Anchor’s bank approved a $6,000, 90-day loan. Anchor plans to sign the note and receive the money on January 2 of the following year. Current Liability Long-Term Liability a. Balance in Long-Term Notes Payable b. Unpaid income tax liability c. Merchandise shipped F.O.B. Shipping Point d. Sales tax collected e. Bank loan
Liabilities on the Balance Sheet
For each of the following situations, indicate the amount shown as current or long-term liability on the balance sheet of Anchor, Inc., at December 31:
a. Anchor’s general ledger shows a credit balance of $150,000 in Long-Term Notes Payable. Of the amount, a $30,000
installment becomes due on June 30 of the following year.
b. Anchor estimates its unpaid income tax liability for the current year is $40,800; it plans to pay this amount in March of the following year.
c. On December 31, Anchor received a $18,000 invoice for merchandise shipped on December 28. The merchandise has not yet been received.
The merchandise was shipped F.O.B. shipping point.
d. During the year, Anchor collected $12,600 of state sales tax. At year-end, it has not yet remitted $1,680 of these taxes to the state department of revenue.
e. On December 31, Anchor’s bank approved a $6,000, 90-day loan. Anchor plans to sign the note and receive the money on January 2 of the following year.
| Current Liability | Long-Term Liability | |
|---|---|---|
| a. Balance in Long-Term Notes Payable | ||
| b. Unpaid income tax liability | ||
| c. Merchandise shipped F.O.B. Shipping Point | ||
| d. Sales tax collected | ||
| e. Bank loan |
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