For Period ending December 31, 2020 Midtown Toy Works operated in 2020 with the following facts: No new Common Stock was issued in 2020 $ 300Cash at the beginning of 2020 $ 15,000Revolving Line of Credit (RLOC) proceeds were received this year. RLOC proceeds have already been recorded in Cash and Revolving Line of Credit Payable. The RLOC is treated by Midtown Toy Works as a Current Liability. $ 22,500Bank Loans repaid during this year Repayment of Bank Loans has already been recorded in Cash and Notes Payable. $ 11,350Accounts Payable from 2019 $ 6,350Taxes Payable from 2019 $ 46,500Receivables from 2019 $ 38,600Inventory from 2019 $ 1,000Prepaid Expenses from 2019 $ 67,000Equipment from 2019 What are the TOTAL CURRENT LIABILITIES as reported in the Balance Sheet tab of your completed spreadsheet?Group of answer choices$38,940$38,380$42,380$36,940

Current liabilities refer to the short-term borrowings or debts that a company has to pay within a…

Answered: No new Common Stock was issued in 2020…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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For Period ending December 31, 2020
Midtown Toy Works operated in 2020 with the following facts:

	No new Common Stock was issued in 2020
	$ 300	Cash at the beginning of 2020
	$ 15,000	Revolving Line of Credit (RLOC) proceeds were received this year.
	RLOC proceeds have already been recorded in Cash and Revolving Line of Credit Payable.
	The RLOC is treated by Midtown Toy Works as a Current Liability.
	$ 22,500	Bank Loans repaid during this year
	Repayment of Bank Loans has already been recorded in Cash and Notes Payable.
	$ 11,350	Accounts Payable from 2019
	$ 6,350	Taxes Payable from 2019
	$ 46,500	Receivables from 2019
	$ 38,600	Inventory from 2019
	$ 1,000	Prepaid Expenses from 2019
	$ 67,000	Equipment from 2019

What are the TOTAL CURRENT LIABILITIES as reported in the Balance Sheet tab of your completed spreadsheet?

Group of answer choices

$38,940

$38,380

$42,380

$36,940

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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