The Following Information Is for Bright Eyes Auto Supplies: Bright

question 9

Multiple Choice

The following information is for Bright Eyes Auto Supplies: Bright Eyes Auto Supplies
Balance Sheet
December 31, 2015
$\begin{array}{lrlr}\text { Cash } & \$ 40,000 & \text { Accounts Payable } & \$ 130,000 \\\text { Prepaid Insurance } & 80,000 & \text { Salaries and Wages Payable } & 50,000 \\\text { Accounts Receivable } & 100,000 & \text { Mortgage Payable } & 150,000 \\\text { Inventory } & 140,000 & \text { Total Liabilities } & 330,000\\\text { Land Held for Investment } & 180,000 \\\text { Land } & 250,000\\\text { Buildings } \$ 200,000 && \text { Common Stock } \$ 400,000\\\text { Less Accumulated } && \text { Retained Earnings } 340,000&740,000 \\\text { Depreciation } (60,000) & 140,000\\\text { Trademark } & 140,000 & \text { Total Liabilities and }\\\text { Total Assets }&\$1,070,000&\text { Stockholders' Equity }&\$1,070,000\end{array}$ The total dollar amount of liabilities to be classified as current liabilities is

• A) $50,000.
• B) $130,000.
• C) $180,000.
• D) $330,000.

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Definitions:

Interest Calculations

The process of determining the amount of interest earned or paid on investments, loans, or savings over a period of time.

Bonds Purchased

Bonds purchased refer to the acquisition of bond securities by an investor, representing loans to the issuer in return for periodic interest payments and the return of principal at maturity.

Accrued Interest

Interest that has been incurred but not yet paid, representing a liability for the borrower and an asset for the lender.

Semiannual Interest Payments

Interest payments made twice a year on a loan or bond.