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Shafer31
Jul 12, 2011, 06:17 AM
h. The long-term note payable bears interest at 1% per month. The unadjusted Interest Expense
Account equals the amount paid for the first 11 months of the 2005 fiscal year. The $240 accrued
Interest for June has not yet been paid or recorded. (Note that the company is required
To make a $5,000 payment toward the note payable during the 2006 fiscal year.)

The balance sheet is supposed to have total current liabilities of 14,290 and this is what I have thus far.

Current liabilities

201 Accounts payable 6350
203 Interest payable 240
208 Rent payable 200
210 Wages payable 1600
213 Property taxes payable 900
Total current liabilities 9290
251 Long-term notes payable 24000

Equity
S.Adams Capital 86960

Total liabilities and equity 120,250

I don't understand how to get the current liabilities to 14290?

kcomissiong
Jul 13, 2011, 07:18 AM
Only use the part of the long term note that is payable this year to calculate your current liability.