Chapter 10, Problem 10.1EX

To determine

Current liabilities: Liabilities are debt and obligations of a business. Current liability is the obligation, which the company is responsible to pay the outsiders within a year.

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To prepare: The current liabilities section of the balance sheet for Corporation B on March 31, 20Y6.