Sonoma Company Has the Following Selected Accounts After Posting Adjusting

question 132

Essay

Sonoma Company has the following selected accounts after posting adjusting entries: $\begin{array}{lr}\text { Accounts Payable } & \$ 6,000 \\\text { Notes Payable, 3-month } & 40,000 \\\text { Accumulated Depreciation-Equipment } & 14,000 \\\text { Notes Payable, 5-year, 6\% } & 80,000 \\\text { Payroll Tax Expense } & 4,000 \\\text { Interest Payable } & 3,000 \\\text { Mortgage Payable } & 120,000 \\\text { Sales Taxes Payable } & 38,000\end{array}$ Instructions
Prepare the current liability section of Sonoma Company's balance sheet assuming $16000 of the mortgage is payable next year.

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Definitions:

Fund Assets

Financial resources under the control of an investment fund, including cash, securities, and other investments.

Sales Expenses

Costs incurred directly from the selling of goods or services, including things like commissions, advertising, and promotional materials.

Balanced Funds

Mutual funds that invest in a mix of asset classes, typically stocks and bonds, aiming for a balance between risk and return.

Equities

Shares of stock representing ownership interests in companies, offering potential for capital gains and dividends.