Chapter 8, Problem 8.46AP

LO 1, 2, 3, 4

(Learning Objectives 1, 2, 3, 4: Measure and report current liabilities) At December 31, 2018, Filbert Corporation’s adjusted trial balance shows the following balances:

Accrued Warranty Payable	$ 58,000
4% Notes Payable, due April 30, 2019	150,000
Unearned Service Revenue	48,000
Accounts Payable	225,000
Employee Income Tax Payable	27,000
Accounts Receivable	279,000
Interest Payable	29,000
8% Bonds Payable, due December 31, 2023	500,000
Accumulated Depreciation	75,000
Treasury Stock	164,000
Salaries Payable	84.000
5% Notes Payable, due December 31, 2019	200,000
Sales Tax Payable	67,000
FICA Tax Payable	7,000

Filbert Corporation provides multi-year warranties with its products. Half of the Accrued Warranty Liability relates to warranty liabilities that will be paid in 2019, while the other half relates to warranty liabilities to be paid in 2020. The Unearned Service Revenue pertains to a service contract that will be performed during 2019. $100,000 of the 8% bonds payable due December 31, 2023, is due on December 31. 2019.

Requirement

  1.    Prepare the current liability section of Filbert Corporation’s balance sheet at December 31, 2018.