Refer to the Following List of Liability Balances at December

question 131

Multiple Choice

Refer to the following list of liability balances at December 31,2017. $$\begin{array} { | l | r | } \hline \text { Accounts Payable } & \$ 22,000 \\\hline \text { Employee Health Insurance Payable } & 1,450 \\\hline \text { Employee Income Tax Payable } & 400 \\\hline \text { Estimated Warranty Payable } & 1,200 \\\hline \text { Long-Term Notes Payable (Due 2021) } & 37,000 \\\hline \text { FICA-OASDI Taxes Payable } & 1,560 \\\hline \text { Sales Tax Payable } & 1,270 \\\hline \text { Mortgage Payable (Due 2022) } & 7,000 \\\hline \text { Bonds Payable (Due 2023) } & 53,000 \\\hline \text { Current Portion of Long-Term Notes Payable } & 7,500 \\\hline\end{array}$$ What is the total amount of current liabilities?

• A)$35,380
• B)$27,880
• C)$27,480
• D)$26,280

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Definitions:

Unearned Revenues

Revenue a company earns for products or services that have not yet been provided or completed.

Classified Balance Sheet

A balance sheet that organizes assets and liabilities into subcategories such as current and long-term.

Subgroups

Subgroups are divisions or categories within a larger group, often used in organizing data, accounts, or various organizational structures for more detailed analysis.

Accounting Cycle

the series of steps followed in the accounting process, from the initial recording of transactions to the preparation of financial statements.