Mountain Gear Corporation Has the Following Selected Accounts After Posting

question 99

Essay

Mountain Gear Corporation has the following selected accounts after posting adjusting entries: $$\begin{array} { | l | r | } \hline \text { Accounts Payable } & \$ 79,000 \\\hline \text { Notes Payable, 3-month } & 90,000 \\\hline \text { Accumulated Amortization-Equipment } & 14,000 \\\hline \text { Notes Payable, 5-year, 4\% } & 30,000 \\\hline \text { Employee Benefits Expense } & 6,000 \\\hline \text { Interest Payable } & 1,500 \\\hline \text { Mortgage Payable } & 250,000 \\\hline \text { Provincial Sales Tax Payable } & 39,500 \\\hline\end{array}$$ Required:
1. Prepare the current liability section of Mountain Gear Corporation's statement of ?nancial position, assuming $15,000 of the 5-year note is payable next year.
2. Comment on Mountain Gear's liquidity, assuming total current assets are $450 ,000.

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Definitions:

Individual Households

Single units comprising one or more persons within an economy that make decisions about consumption, saving, and labor supply.

Inflation

The speed at which the overall price level for products and services increases, diminishing the buying power.

Unemployment

The situation where individuals who are capable of working and willing to work do not find employment.

Opportunity Costs

The cost of the next best alternative foregone as a result of making a decision.